Calculating fuel expenses for ad hoc freelance work?

Posted 8 January 2015

How do I calculate car expenses for ad hoc freelance work? As an employee I'm reimbursed at the SARS rate for travel and it is recorded on my IRP5. But as a freelancer doing a couple of ad hoc jobs over the course of a year, whilst still being employed elsewhere, how do I calculate the expense per km, and what documentation/records do I need to keep?

Calculation of 183 days outside South Africa for income tax exemption as per Section 10 (1)(o)(ii)

Posted 8 January 2015

Can the entry and exit dates as per the South African Passport Control stamp in you passport be used as the entry and exit days (both days included) to calculate the 183 days outside South Africa for foreign salary income tax exemption, as per Section 10 (1)(o)(ii) for example: depart from South Africa the morning of 1 January 2015, passport stamped as "exit" by South African Passport Control and enter South Africa again on afternoon 10 January 2015, passport stamped as "entry". So days outside ...

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Getting a Salary vs Invoicing the Company?

Posted 6 January 2015

Good day. I was wondering if TaxTim could help me with a query relating to my salary at my new job.

The owner prefers me to invoice him for my services at the end of the month. My question relates to what the tax implications will be with this? The remuneration is R120K per year and will be paid monthly.

Does this require me to act like a small business? And is the tax payable more or less in this case?

Thanks for your time

Settled business/private car tax allocation

Posted 5 January 2015

I have paid off/settled my car 4 years in advance that I use for business and private purposes. So far I've kept track of km for each and apply that percentage to my monthly installment as business expence. But how to go now about with the settled amount paid? What percentage must I use to allocate for tax purposes?

Can I invoice my employer as if I were a consultant instead of being an employee and paying PAYE?

Posted 5 January 2015

The question, I am employed by a company full time to which I fall in the 38% tax bracket and would like to figure a way out to pay less tax especially when I get paid commission over above my salary.
My company is open to the idea that I open a 'consulting' company to which I then invoice my employer as if I am not employed by them.

Is this possible and what are the implications of this approach?

Provisional Taxpayer or not?

Posted 29 December 2014

Im currently working for a employer whom pays my salary monthly along with benefits such as Vehicle, Cell Phone, Medical and UIF/Pension. I'm also a partner in a small business that doesn't return large amounts, largest would be R60 000.00 per annual however would be paid out as a salary and also taxed. Would I therefore fall under a provisional tax payer or normal? Noting again that the income gained from the business is paid as a salary over the year and has its own taxes on it.

Confusing situation with SARS calcs methodology

Posted 11 December 2014

SARS - Why is an "original assessment" ITA34, positive amount, taken into consideration in the final SOA, even though a final "after a correction" ITR12 submission calculated to a negative reduced amount?What is the use of requesting and allowing a "request for correction" then in the first place?Shouldn't the final submitted ITR12 negative result (after corrections) be the only assessment that counts and be taken into account in calculations of your final SOA...

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Bussiness travel deviation, how do I claim bussiness mileage?

Posted 10 December 2014

I am driving from home to a business meeting, so its business mileage, but I have to drop my spouse at work which is a few Km's off the normal route to my destination. Can the total distance driven still be claimed as business travel?

Have car allowance but using car that is not registered in my name?

Posted 2 December 2014

I get a car allowance and the car I am using is registered in my wife's name. She is paying for the vehicle. Sars is refusing to pay me a refund because the car I am using is not registered in my name. Can they do this or do I have grounds to dispute this.

Can I claim on diesel?

Posted 27 November 2014

what can I claim back from the tax as a cc example: diesel and how does it work we have got 2 vehicles that does all the work for the call outs and work to be done

If my bonus is equal to my salary but includes allowances am I liable for dubble the UIF and PAYE?

Posted 25 November 2014

If your bonus is equal to your salary but it include travel allowance and telephone allowance how is it calculated for example;
My gross salary is R8800.00 (Basic Salary Allowance transport R500 R300 telephone allowance) bonus R8800.00 gross Income=R17600.00
How much will the UIF be and the PAYE?

What do I apply for in Freelance?

Posted 23 November 2014

Hi.I am getting paid a fixed monthly amount from a company to do merchandising for them 3 times a week.This is my only source of income? (R7000,00 per month)I will also need to pay my petrol with this income as the job require traveling?What do I need to apply as?will it be a tax directive or a provisional tax payer?

Treatmnet of taxable earnings refunded in clawback of maternity leave

Posted 21 November 2014

My question is around the treatment of the tax on maternity leave that is clawed back. Our company pays 4 months full pay while an employee is on maternity leave,but there is a clawback should the employee resign within 12 months of returning from maternity leave.

We calculate the clawback on a gross salary plus allowances and any benefit payments, eg: Basic pay, plus travel allowance, plus company paid medical aid, plus company paid provident fund, and deduct the sum of these from any outstanding money due to the employee. We deduct the total due as an advance and credit the cost centre accordingly....

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How to claim Motorcar expenses

Posted 21 November 2014

I am self employed (Handyman) and use my car to get to the places of business. I keep a log of km traveled for business. SARS informs me I am NOT allowed to claim any expenses with respect to my motor vehicle. Is that true? If not how to go about it?

Debit Loan Accounts & DWT

Posted 21 November 2014

I'm the sole member of a CC & have a debit loan account amount of approx R200,000 for the 2014 tax year.I believe that this raises certain DWT issues etc and was wondering if the CC charges me market related interest on this amount for the year & adds this amount to my loan account, would this solve my problem & not have to declare a dividend to balance the loan?If also heard that if the deemed dividend rule (DWT) will not apply if the loan is repaid or otherwise extinguished by...

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Business parking fees

Posted 21 November 2014

Where in eFiling do you log business parking fees?
(If your business is in a business park)

How to input a donation on eFiling?

Posted 20 November 2014

I made a Section 18A donation. There is nowhere to input it on my eFiling. How do I enter and what is the source code?

travel claims on fixed & commission income

Posted 20 November 2014

I work for a company that pays me a fixed salary but also pays commission on extra work I bring in.
They do not pay me for any travel at all,. Can I claim work related travel on my tax return?

How do I know whether to deduct wear and tear or lease payments on travel claim against allowance

Posted 20 November 2014

I receive a vehicle allowance and use a hired purchased vehicle for business use and need to know how to choose between depreciation (wear & tear) or lease payment on Travel Claim Against Allowance.

I guess what I'm asking is whether SARS sees a hired purchase payment the same as a lease agreement payment.

May I choose between the greater of the two?

Can I claim depreciation on my vehicle

Posted 20 November 2014

Depriciation on my vehicle

Declaring Subsistence Allowance

Posted 20 November 2014

My IRP5 does not have a code for the subsistence allowance I got when travelling oversees.I did not use all of the allowance I was given while on the trip and was told I could keep it.How do I declare this in my income tax return?

Entered profit made but only half of 33% pulls through as deemed income on eFiling?

Posted 19 November 2014

I saw reply re base costs and proceeds but if I enter this on eFiling and ask for calc, my deemed/additional income is only 16% of profit made, I thought 33% will pull through?

Maximum amount under code 3703

Posted 19 November 2014

My company reimbursed me an amount of over R50k on code 3703 (non-taxable reimbursement) for fuel used during the tax year. SARS then moved the full amount to code 3702 (taxable reimbursement) saying that this amount exceeded the max allowable for code 3703 which is R25920 (8000km x R 3.24). They now want me to pay more than R15k in additional taxes. They asked me now to provide an amended IRP5 showing not more that R25920 under code 3702 which I have requested from my employer. Is there anythi...

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Reistoelaag kodes 3701 & 3702 verskil

Posted 18 November 2014

Hallo. Wat is die verskil tussen die reistoelaag kode 3701 & 3702 en wat is die impak daarvan?

Capital Gain Tax for Private Vehicles Used for Business?

Posted 18 November 2014

I have a private vehicle which I use for business purposes.
I receive a travel allowance and also claim deductions on my return, based on the business mileage I do on the vehicle.

If I sell this vehicle, would I calculate capital gain/loss on the sale of the asset to input in my tax return?
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