Should I register for IRP6 or IRP3?

  Written by Marc   Posted 26 February 2016

I found two forms on the SARS site, IRP3 which states it's meant for freelance artists and IRP6 for provisional tax. I'm a freelance artist so should I fill in and resister for IRP6 or IRP3 or both?

Do I need to complete an IRP6?

  Written by Marc   Posted 26 February 2016

You sent me a reminder to file my IRP6 Provisional Tax Return for 2016 however, I'm not sure whether I am still a Provisional Tax payer?

I did freelance work until Feb 2015, and from March 2016 I've been employed, paying PAYE through my employer. I haven't earned any additional income. Do I still need to complete an IRP6 as a Provisional Tax payer?

Can invoicing several clients constitute a salary and not trade?

  Written by Marc   Posted 26 February 2016

I privately tutor pupils at their homes and invoice several clients for this service. One of them pays me a monthly salary (but pays nothing to SARS) based on monthly invoices and the rest I invoice by the hour. Can I declare all of this as a single salary and pay it with my ITR12 or do I need to register as a provisional taxpayer?

I changed from being employed (normal IRP5 scenario) to self-employed during the last financial year so I am not yet registered for provisional tax

Can I claim back my tax?

  Written by Marc   Posted 25 February 2016

I earn less than R180 000 per annum. I only just entered the work force, and taxes still confuse me. I'm an independent contractor (but get set salary each month), and therefore I pay 25% tax. However, our accountant assured me I can reclaim all the tax I paid. Granted, last yr I earned only R74 000, paying 25% tax, and I know I can reclaim that. Basically, will I be able to reclaim the tax I am paying this year, and what is the maximum annual income for which you can still reclaim your tax?

Tax for a contractor

  Written by Marc   Posted 25 February 2016

I'm on a contract for 6 months and I earn 12000. How much will be my take home amount? as I get paid different amounts monthly and its confusing

Company car versus personal car and travel allowance

  Written by Nicci   Posted 23 February 2016

A client of mine is the sole shareholder and employee of his company. He does a lot of car travel for his work.
What is the most beneficial method in terms of tax:
to buy a car in his own name, or to buy one in the company name and use it for business and personal (will be small personal use)?

Can I claim VAT input even though I haven't charged VAT output?

  Written by Nicci   Posted 23 February 2016

My PTY(LTD) voluntarily registered for VAT, However I have not being charging vat on the supplies my company makes and have not issued valid tax invoices for the supplies made. Can I still claim the input VAT from expenses incurred even though I have not charged VAT on my taxable supplies?

Claiming travel expenses on a fixed cost basis without an travel allowance

  Written by Marc   Posted 22 February 2016

I am self employed and earn commissions and fees. Can I claim a travel expenses on a fixed cost basis even if I don't get an travel allowance?

Is my previous company suppose to apply for a tax directive on retrenchment?

  Written by Nicci   Posted 19 February 2016

I was retrenched last year July (2015) Once I had received my notice and my retrenchment package I noticed that they had taxed me on my retrenchment package. I asked the Payroll/HR department if they had applied for a tax directive to which they replied that it was not necessary. I told them that as far as my understanding went it was necessary to determine how much tax I should pay if any.

Fuel Reimbursement

  Written by Nicci   Posted 19 February 2016

What tax code must be used when a company reimburses fuel only and business km's exceeds 8000km per annum. There is no refunds for wear and tear, repairs and maintenance or insurance. At present the code on the IRP5 is 3702, is this correct?

SARS Payout

  Written by Nicci   Posted 19 February 2016

I owed SARS money (Statement of Account Period: 2015/07/28 To 2016/01/28), I submitted a dispute, and the following is now showing. SARS Status: Please note that your tax return cannot be processed immediately due to an outstanding Tax Directive. Therefore, manual intervention is required. SARS will advise you as soon as your tax return has been assessed 2016/01/28. When I followed up this is the newest update:
NOTICE OF ASSESSMENT: REDUCED ASSESSMENT 2016/02/15. The amount stated here is a negative amount/ amount with a minus infront. Do they deducted this amount from the amount I owned them, or do they owe me this amount?...

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Tax question on medical aid and correction for SARS

  Written by Marc   Posted 19 February 2016

I've just got back and seen the email from SARS. I have a few questions. 1. I made a mistake on the foreign Income, as it was through the business and not my personal account. I was busy doing my business accounts while filling in my personal tax and got confused. 2. My medical aid was paid by my previous employer. They forgot to cancel my medical aid and have asked me to pay them back for that year. I received a tax certificate from my medical aid so do I still qualify to claim tax from that?

Treatment of rental loss and living expenses while studying

  Written by Nicci   Posted 18 February 2016

From Sep '14 to Oct '15 I temporarily left the employ of my company to study my MBA full time overseas. During this time I rented my primary residence in South Africa out. (a) Am I able to deduct the losses on the rental of my primary property (rent - levies - interest on bond - rates) from my taxable income?

(b) During the time I was away, I had to make use of savings to pay for living expenses (food, necessities, partial travel expenses, but NOT tuition, textbooks, accommodation, vi...

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How does it work now if you just earn commission but tax and uif does not get deducted?

  Written by Marc   Posted 16 February 2016

Hi. I used to work for company that deducted tax from my salary, so I'm a registered. But now I work for a company that does not deduct tax and I only get commission. My question is how do I claim my tax for my medical aid if I don't receive a IRP5?

How does it work now if you just earn commission but tax and uif does not get deducted?

Chairperson tax explained

  Written by Marc   Posted 15 February 2016

Please explain the following to me:
1. The taxation of non-executive chairpersons of small companies earning a monthly amount in directors (Chairperson) fees. (They work full time earning a salary from a different Company. )
2. Should the non-executive chairperson be treated as an employee on the payroll of the small Company whilst working for another company or can it be treated through normal finance department transactions?
3. Should the normal statutory deductions like SDL an...

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Business travel claims with no travel allowance

  Written by Marc   Posted 12 February 2016

How does one go about claiming a vehicle that I use 70% for business and 30% private. I have a detailed log book and do about 18,000km business travel/year but I do not receive a travel allowance.

Can I deduct my Gautrain tickets from my tax

  Written by Marc   Posted 12 February 2016

Can I deduct my Gautrain tickets from my tax

Reimbursive travel

  Written by Marc   Posted 12 February 2016

For the 2015 year of assessment, my employer re-reimbursed me for travel. They paid me at the official SARS rate of R3. 30 per km, I traveled 6,691. 52 kms, it is thus my understanding that because this is less than the maximum allowed by SARS of 8,000km, this amount falls under non-taxable income and should be allocated to the code 3703. My employer allocated this to code 3702 on my IRP5. I corrected this on my tax return, yet SARS are of the opinion that this amount should fall under taxable i...

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Where in the ITR12 can I claim toll fees paid on business trip if I don't use actual costs.

  Written by Marc   Posted 12 February 2016

I have incurred toll fees while on travelling on business trips to clients. My employer does not reimburse this fees I incurred citing that I should cover them from the reimbusive travelling claim that I get. I don't use the actual cost incurred but rather the estimates as per tables. My question is, where in the ITR12 can I book this fees against my income.

Multiple sources of income

  Written by Marc   Posted 10 February 2016

I am a co-owner of a company which I work for and currently work part time for a University. Last year I worked part time for a corporate company and thus I have multiple sources of income. I find it extremely difficult to understand where each of these earnings should go etc.

Incorrect logbook information

  Written by Marc   Posted 9 February 2016

I just want to find out with regards to car allowances. I switched employment in June 2014 and did not have access to my kilometers claimed at my previous employer. I started working at my previous employer again in January of this year and found my old information. It seems like I might have submitted incorrect information on half of the year for car allowance. I am currently being audited manually, and do not know what to do, please advise?

Unemployment and provisional tax

  Written by Marc   Posted 8 February 2016

I was unemployed for roughly six months of the 2015/2016 tax year, do I need to submit any proof. Now with the new work I have to pay provisional tax because I work for myself but not as a company, how does this affect tax deductions?

Payment to spouses for admin work

  Written by Marc   Posted 5 February 2016

I am self employed and work from home. My wife helps me with admin part time. Am I able to pay her a reasonable market fee and deduct this from my income. My wife also contracts for other companies. What the implications for preparing tax returns.

PAYE for employee with 2 employers

  Written by Marc   Posted 5 February 2016

I am sharing a secretary between me and a colleague. We are working in the same office. We pay her a total of R8000 p. M (R4000 each). Obviously PAYE should be deducted based on her total yearly income (R96000) and paid to SARS before the 7th of each month. Is it fine for me and my colleague to split the PAYE and UIF contributions and pay those separately to SARS, and issue her one payslip between us? If so, does she need two IRP5s issued?

Query re first time tax for new small unregistered business

  Written by Marc   Posted 4 February 2016

I left a permanent job and started a freelance design business in July 2015. My Personal income tax for last year is up to date. I need to start paying tax on my business but have no idea how this works. I am using my personal bank account to receive payments from clients for design services. I am not yet breaking even and can barely pay my bills. I am not making a profit yet. I have no idea how tax works. I need help and wondered if signing up to TaxTim would be the way to go? I would need to b...

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