Learning Hub

Know your numbers. Know your obligations.

Plain-language guides to tax, payroll and bookkeeping for South African individuals and small businesses. Written by Kgalalelo Ndlovu, Chartered Bookkeeper CB(SA) and SARS Registered Tax Practitioner.

Coming soon

  • Do I need to file an ITR12?
  • Do I need to register for VAT?
  • How VAT201 works
  • PAYE, UIF and SDL explained
  • Who pays provisional tax, and when?
  • CIPC annual returns and beneficial ownership
  • How long to keep your records
  • I got a SARS verification letter: what now?

Get notified. Never miss a deadline.

New guides as they're published, and short reminders before key SARS deadlines. No spam; unsubscribe any time.

Thank you! You're on the list. Look out for an email from info@remodelyou.co.za.
Running your business

What your bookkeeper needs from you each month

4 min read · Updated September 2026

Good books start with good information. Your bookkeeper can only record what they can see, so a missing statement or slip can mean a wrong VAT return, incorrect payroll, or a late SARS submission. Here's what to send every month, and how to make it easy.

1. Bank statements

2. Sales

3. Purchases and expenses

4. Payroll changes

5. Anything unusual

Tip: Photograph slips on the day you get them. Till and fuel slips are printed on thermal paper and fade within months, and SARS can ask for your records for up to five years after you submit a return.

When to send it

Aim for the 5th working day of the next month. EMP201 is due by the 7th, and VAT201 by the end of the month after your VAT period, so early information means no rush and no penalties.

Three habits that save you money

  1. Keep business and personal money separate. Use one business bank account for all business income and expenses.
  2. Add a short reference to payments ("Invoice 1042, Makro") so every transaction can be matched quickly.
  3. Send everything at once, rather than bit by bit through the month.

Want this handled for you every month?

See packagesBook a consultation

General information only, not advice for your specific situation. Contact us before making tax or accounting decisions.

← Back to all articles
Tax for individuals

How to read your IRP5

5 min read · Updated September 2026

Your IRP5 is the tax certificate your employer issues after each tax year (1 March to the end of February). It shows what you earned and how much tax was deducted, and SARS uses it to pre-fill your ITR12. If you earned income but no tax was deducted, you get an IT3(a) instead.

First, check the basics

The codes that matter most

Codes starting with 3 are income. Codes starting with 4 are deductions and tax.

CodeWhat it means
3601Salary or wages (taxable income)
3605Annual payment, such as a bonus or 13th cheque
3606Commission
3701Travel allowance
3713Other allowances
3810Medical aid paid by your employer on your behalf (taxable fringe benefit)
3699Total taxable income for the year
3696Total non-taxable income
4001Pension fund contributions
4003Provident fund contributions
4005Medical aid contributions you paid
4474Employer's medical aid contributions (treated as paid by you)
4116Medical scheme fees tax credit already given through payroll
4102PAYE: the tax your employer deducted and paid to SARS
4141UIF contributions (yours and your employer's)
4142Skills Development Levy (paid by your employer, not you)

What to compare

Two IRP5s? Check before you celebrate. Each employer calculates PAYE as if theirs is your only job, so both apply your full tax-free portion. When SARS adds the income together, you often end up owing tax rather than getting a refund.

IRP5 missing on eFiling?

Employers submit IRP5s to SARS with their annual EMP501 reconciliation. If yours isn't showing on eFiling, ask your employer's payroll or HR team whether it was submitted, and for a copy.

Not sure if your IRP5 is right, or need your ITR12 done?

Book a consultationAsk a question

General information only, not advice for your specific situation. Contact us before making tax decisions.

← Back to all articles
Tax for individuals

Medical aid and your tax refund

5 min read · 2026/27 tax year (1 March 2026 to 28 February 2027)

Medical aid can reduce your tax in two ways: the medical scheme fees tax credit, and the additional medical expenses tax credit. Both are credits, which means they reduce your tax rand for rand.

1. Medical scheme fees tax credit

You get a fixed monthly credit for every month you pay medical aid contributions:

Who is coveredCredit per month
You (main member)R376
First dependantR376
Each additional dependantR254

Example: a family of four (you, your spouse and two children):

R376 + R376 + R254 + R254R1,260 per month
R1,260 × 12 monthsR15,120 per year

If your medical aid is deducted through payroll, your employer usually gives you this credit every month already (code 4116 on your IRP5). That's why this credit alone often doesn't create a big refund.

2. Additional medical expenses tax credit

This extra credit is for high medical costs. The formula depends on your age and disability status:

You areFormula
Under 65, no disability25% × (contributions above 4 × your annual medical credit + out-of-pocket medical costs − 7.5% of taxable income)
65 or older, or you, your spouse or child has a disability33.3% × (contributions above 3 × your annual medical credit + out-of-pocket medical costs)

Example 1: Thandi, 42. Taxable income R360,000. She and her husband are on medical aid for 12 months, paying R4,000 a month. She paid R8,000 in medical costs the medical aid didn't cover.

Annual medical credit: (R376 + R376) × 12R9,024
4 × R9,024R36,096
Contributions above that: R48,000 − R36,096R11,904
Plus out-of-pocket costsR19,904
Less 7.5% of R360,000 (R27,000)−R7,096
Additional creditR0

For most people under 65, out-of-pocket costs have to be high before this extra credit kicks in.

Example 2: Thandi's mother, 68. Taxable income R200,000. She's the only member, pays R2,500 a month (R30,000 a year), and paid R12,000 out of pocket.

Annual medical credit: R376 × 12R4,512
3 × R4,512R13,536
Contributions above that: R30,000 − R13,536R16,464
Plus out-of-pocket costsR28,464
Additional credit: 33.3% × R28,464R9,479

Receipts to keep

Tip: Keep a folder (or a phone album) called "Medical 2026/27" and drop every receipt in as you get it. It's much easier than hunting for slips at filing time.

Want to know what you're entitled to back?

Book a consultationAsk a question

Figures based on the 2026/27 SARS tables, which change each year after the February Budget. General information only, not advice for your specific situation.

← Back to all articles
WhatsApp us