Independent Contractor Setup

Posted 8 January 2016

Hi TaxTim

Great site!

I need guidance on what is required ito independent contractor (IC) tax & vat requirements. 1) If trading through my PTY LTD company as an IC, do I pay companies tax as well as personal income tax?
2) Do I deduduct all claims and deductions (medical aid, RA) prior to paying over tax, or only when I reconcile/ file tax?
3) How many times a year do I need to file tax returns?
4) Do I need to setup PAYE and UIF?
5) Income will exceed R1m per year, so vat should be registered. If true, When do I pay vat over to SARS and what paperwork is involved?...

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Tax deductions with Medical aid

Posted 5 January 2016

How do you calculate Tax when there is a medical aid deduction where the full contribution is from the employee and none from the company?
Eg. Gross Salary: R18400
-Deduction - Medical Aid: R2018
-Deduction - Tax:?

Without the medical aid I worked out Tax deduction should be - R2466

Am I a provisional taxpayer if my employer does not deduct tax from my salary?

Posted 4 January 2016

I get a monthly salary on a set day every month but I get it in full, without any tax deductions. It is my responsibility to arrange for the payment of tax with SARS. Do I have to register as a provisional tax payer in order to pay tax?

Can you claim medical aid tax credits if the main member is deceased

Posted 4 January 2016

Can you claim medical aid tax credits if the main member is deceased

Tax problem

Posted 30 December 2015

I am a self employed day mother in South Africa I worked a corporate company 8 years ago which deducted PAYE then I resigned I have never signed up with SARS as I was under I did not earn enough.. I now earn around 9000 rand a month but this is only recently. I have tried to join discovery hospital plan and they want an affadafit from the police station to say I dont have any IRP5 forms or payslips which obviously I don't have as I am not employed by anyone.. How do I go about this.. Help

Contracting Benefits vs Salary

Posted 23 December 2015

I am currently a salaried employee and I get deductions for:
- Medical aid
- Travel allowance
- Retirement (RA)

I am considering contracting (to one client). Will my total monthly invoiced amount be taxed normally? I will have to pay for medical, travel and RA directly. Am I losing out or do I still claim for these somehow?

What would my tax be?

Posted 23 December 2015

I recieve a weekly salary of R1650. I also recieved a bonus last week of R6600,therefor my salary was R8250 for the week. I only get paid like this once a year. What would my tax be on that weeks payslip? I dont have pension,provident or retirement funds. Not even medical or traveling.

How do I resubmit my form

Posted 15 December 2015

I have made an amendment to my medical records as I only found receipts to the value of 2696 how do I resubmit my form

IT34A

Posted 14 December 2015

Dear Tax Tim
I earn random commissions as an event planner and promoter. Get paid cash. No Medical Aid or Retirement Funds. Have applied to purchase a vehicle and they want ITA34. I have never submitted a tax return.

Unsure how this calculation works for medical tax?

Posted 8 December 2015

Why is the medical tax credit multiplied by four.

IRP5-2007

Posted 7 December 2015

Dear TaxTim. Worked in a Government Hospital, resigned in 2006. The following year went to fetch my IRP5 2007 but couldn't be found, assumed somebody took it for me. Now I'm in Gauteng where can I get a copy. I'm being penalised. Thanks

Too many documents

Posted 7 December 2015

SARS has provision of submitting 20 documents only and I have more than 20 documents. SARS doesn't accept excel with more than 1sheet. I have bank statements, receipts, excels with car logs, medical expenses, donations, depreciation, donation and medical certificates, monthly credit card statements. Please suggest how to submit documents. Thanks

Medical expense claim from SARS?

Posted 7 December 2015

I tried to claim for medical expenses that I paid out of my own pocket but did not receive rebate, instead I have to pay SARS?

Tax return question

Posted 7 December 2015

If you pay medical aid close to R4k out of pockets, and within a tax year you have incurred additional medical cost of about R15k, you have monthly RA of R1k... And you still contribute towards your employers RA. How much roughly would one get for tax returns

Can I claim for Medical Aid and Provident Fund contributions at the TAX year end?

Posted 7 December 2015

In my new job I am getting a CTC of which only income TAX will be deducted. Previously Medical Aid and Provident Fund was deducted from the CTC then the remainder taxed, as a result I paid less TAX. In the new job I will have to pay med aid and provident after my income has been TAXED. Will I am be able to claim at the TAX year end for this?

Will I be able to get the same amounts as if the amounts where being deducted from the CTC before being TAXED?

Can I claim back on disability for my child attending a remedial school?

Posted 3 December 2015

My child attends a remedial school which was recommended by a psychologist. Can I claim back on these fees as a disability?

Document/records storage

Posted 3 December 2015

If I change to SARS eFiling with your assistance, where would my tax records be stored. & who stores them -- SARS, Myself, Tax Tim??

Med Aid claims

Posted 2 December 2015

I am 74 years old. What out of my own pocket medical expenses can I claim?

Will I be penalized for not filling in a tax return for last year and this current year

Posted 1 December 2015

I have been working for 2 years now, I started 3 December 2013 and I never filled in a tax return before. I only became a permanent employee 1 April 2015 and only then started contributing towards a medical aid and pension fund. I have missed the 27/11/2015 tax return deadline. I am not sure how this whole process works. Will I be penalized for not filling in a tax return for last year and this current year. I will be more than happy to pay for your services. Regards

Can employer deduct medical tax credits from employees tax but the employee is paying the medical ai

Posted 30 November 2015

Employer pays a basic salary to employee of R28 000,00 per month. There is no fringe benefits. Employee pays a medical aid scheme for himself his wife and 4 children. Employee shows proof of his medical aid to employer. Can employer deduct the medical tax credit of R1264 from the monthly employees tax. That is R5171 less 1264 =R3907. And then when doing the employers recon the IRP5 will only have the earnings of R336000,00 (under the 3601) and employees tax R46884 and no other codes except for u...

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Out of pocket medical expense for dentist.

Posted 30 November 2015

I'm 25 years old, my annual income is approximately R264000 and I'm also paying my own medical aid at a rate of R1710 p/m with no other dependents. I'm considering the possibility of having severe dental work done on my teeth that will be a R150000 out of pocket medical expense. How much of this will I be able to claim back from tax?

As far as I know over the counter medical expenses cannot be claimed

Posted 30 November 2015

As far as I know over the counter medical expenses cannot be claimed, unless it is on doctor's prescription. You say I may claim it?

Medical Aid Deductions

Posted 27 November 2015

Can contributions to a hospital plan be deducted?

What does physical impairment include interms of expenses I can claim?

Posted 27 November 2015

What does physical impairment include in terms of expenses I can claim?

Can I claim from my monthly supplement expenses, or only actual medicinal expenses?

Posted 27 November 2015

Can monthly supplement expenses be included in the "medical expenses" I spend monthly as my medical aid is only a hospital plan.
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