There is nowhere to list my deductions as a self employed business owner

Posted 10 September 2013

I am filling out the tax return and despite having said Yes to being a provisional tax payer it is asking me questions relevant only to an employee, such as do I have a company car etc and keeps referring to my IRP5, which obviously I don't have, being self employed.

Has something gone wrong, am I filling in the wrong form? Where do I list my deductions, of which there are many?

Personal Service Provider

Posted 8 September 2013

Hi Tim

1. I am starting a company and it will be a Personal service Provider. I know tax has to be withheld at 28% by my client. What I don't understand is whether the 28% is a flat rate or does the tax payable get recalculated when I submit my ITR12?

e.g.
Say I earn 20000 a month X 28 % tax = 5600 . Tax payed for the year = R 67200.
However if I was taxed as a regular employee my tax would have been = R 37,359.75

Will SARS pay me back the difference?
...

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Incorporated versus sole prop for a new business

Posted 4 September 2013

Hi Tim. I am about to embark on a new venture and start up my own business. We are bound by various rules and regulations as per the HPCSA and are only able to practice in an incorporated or solus practice. I am feeling very unsure as to which is the best option tax wise? The gross monthly income of the practice is expected to start off at and vary between R30 000 and R50 000 per month. I will not have any partners or permanent employees. I work from home 50% of the time and am onsite (travellin...

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Working from SA, being paid in UK

Posted 4 September 2013

Living and Working in South Africa remotely to UK (IT).

Hi Tim

I lived in UK for 5 years and returned to SA in 2010. I have dual nationality (German and South African).

I have been working in SA for a local company since 2010 earning rands. I have now been approached by my previous employer in UK to work for them again remotely from SA.

If I am paid by them in pounds into my UK bank account where will I pay tax and will have have to bring in all my earnings to SA or can I only bring in what I need?...

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I can't log in to SARS eFiling. Have lost my register details.

Posted 1 September 2013

How do I 're-register' as a provisional taxpayer online? My attempts to do so keep failing.

Which tax year do provisional tax payers use in August 2013 and how do they find out current values?

Posted 29 August 2013

As a provisional tax payer, surely one pays tax at the end of August 2013 on the basis of what has been earned from March 2013 to end August 2013 and this would be for the 2014 tax year. I also have difficulty finding out current It3 (c) values.

Oops - I under estimated first provisional tax payment what now?

Posted 28 August 2013

Hi Tim

I just filed and paid my IRP6 for the first payment just to realize that I might have under-estimated. Do I need to ask for a correction or can I rectify it with my second payment? Will there be any penalties?

Please let me know

How would I calculate my business provisional? I need to pay the first 6 months

Posted 28 August 2013

How would I calculate my business provisional, I need to pay the first 6 months on Friday 30 August.

Hourly rate "net of tax". What does this mean?

Posted 26 August 2013

I am starting a new position with a multi-national US based company, and my letter of appointment lists my hourly rate as "net of tax". I am not sure what this means, and was hoping you would be able to shed some light. How are my tax implications affected? Do I need to register for provisional tax?

When must I start paying tax with (Pty) Ltd and should my company be audited, if so when?

Posted 25 August 2013

Hi Tim,I've registered a (Pty) Ltd at CIPIC to act as a holding company to launch all my ideas through and operate from its bank account.I am confused however as to at what point I would have to pay tax with this business, i.e after how much income should I pay tax, at what amount?Also if and when my company would need to be audited, since it is a (Pty) Ltd but still pretty small?Thank you

How to deal with depreciation if moving from sole prop to CC.

Posted 23 August 2013

On 1 September 2013 I will cease as a sole proprietor and operate as a CC. How do I deal with depreciation eg a truck depreciated for 8 months with 40 left under the new CC.

Provisional tax Period 1 query

Posted 22 August 2013

Hi. I am a provisional tax payer for the first time due to earning rental income greater than the threshold. I received (& was taxed on) a bonus from my employer in June this year. How do I treat the bonus payment on the provisional tax return (period 1)?
If I include it as part of taxable income, my tax payable is inflated as bonuses are taxed differently from normal income. Please advise.

When is the deadline to submit a IRP 5 form?

Posted 19 August 2013

When is the deadline to submit a IRP 5 form?

Provisional Tax form completion for declaring Capital Gains

Posted 17 August 2013

I've cashed out my investment portfolio in May this year, in preparation for emigration, which will be completed in September this year. So I need to fill out a provisional tax declaration for capital gains, which comes to around R75k. I also haven't been in South Africa for the entire year - we moved overseas before the tax year started. So I haven't earned any income in South Africa to declare.

In the provisional tax income form, I fill out the R75k as "Gross/turn over", and have calculated the taxable income as R14k (R75k - R30k excluded amount for capital gains per year x 33.3% inclusion rate)....

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Supporting docs for sole prop tax return

Posted 10 August 2013

What documents should you submit to SARS when they request supporting documents for income tax returns as a Sole proprietor ?

How can SARS assess me as being R80,900 in arrears when I pay PAYE each month?

Posted 8 August 2013

SARS sent me an SMS saying I have R80,900 in tax arrears. Although I'm registered as a provisional taxpayer, I also paid PAYE through my employer of R39,010.89, and then an additional payment of R44,000.00 three months ago (as am married in C.O.P. and my wife has an annuity income). Can you advise me how to go about finding out why they say I owe so much? I'm freaked out as I simply can't pay.

Freelancer questions - Personal / business home office expense and wear & tear on a PC

Posted 5 August 2013

I am a freelancer & am registered as a provisional tax payer.

With regards to sharing rental costs, seeing that one of my rooms in my flat is used for my office, can I add detergents, coffee & tea to my list of expenses? If I had an office, these would come off as office expenses I'm sure. So seeing that I use the communal area of my house, i.e. toilet & kitchen, should the running expenses not be added to the amount I split between personal/business use?

With r...

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Freelancer - local and international - Needs to start keeping records for tax purposes

Posted 31 July 2013

I have been freelancing for local and international companies for a few months. I need to get my tax admin sorted out. I work from home and am on my husbands medical aid.

Where do I start and how do I maintain all my information that I need to? I'm happy to set up Excel docs to keep records. I'd like to know what I should be keeping records of,  where I can benefit from tax refunds, and what expenses I can set against the business. Do you have any templates I could use?

Als...

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Company tax submission dates?

Posted 28 July 2013

What are the tax return submission dates for a company with a year end of July?

As a contractor should I submit both IRP6 and an IT12 or just the IRP6's?

Posted 24 July 2013

Hi Tim, thanks for a great web site!

I'm an IT contractor and for 6 months at the start of 2013 I worked for a company in South Africa and was paid a fixed amount each month. I received a payslip and tax was deducted, however my tax number wasn't included on the payslip. I was asked to become a permanent employee after the 6 months but declined and subsequently left SA to work overseas on a contract where the money I earned was transferred to my SA bank account. I submitted an IT12 to SARS showing the amounts I'd earned from both contracts...

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Declaration and calculation of Trustees Fees received for income tax purposes?

Posted 24 July 2013

If you receive Trustees fees how should this be declared and taxed?

How does the rental tax on a first property, paid in cash, work?

Posted 23 July 2013

I currently live with my parents, on their property. I am looking at purchasing an apartment for R650 000 and renting it out. I have been given the option of paying for this in cash and then paying my family back at their low bond rate of 6.5% (prime -2%).

The property will be rented out for R5500. The expenses on the property (rates and levys) are R1800. So the rental income would be R3700pm. This R3700 as well as another R4300 will be paid monthly to my parents (total R8000pm).
...

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How much tax do I have to pay as a self employed buinessmen?

Posted 19 July 2013

Hey Tim, awesome site and very helpful info. I am not sure of my tax number, I was out the country for a few years and before that I was self employed and now again I am self employed. I last worked for a company n SA probably 10 years ago.

We have started 3 businesses since we have been in SA (my wife and I) and the first 2 didn't really get going at all and cost much more than they made which wasn't much at all. They were both Close Corporations but we never got to the stage when we got a bookkeeper in to do anything...

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We run a small business, how do we account for the income tax?

Posted 17 July 2013

MY girlfriend and I have had our business for about a year now, we would like to know what we are supposed to do? Tax return number? Provisional tax?Corperate income tax?Turnover tax?I don't understand any of it

How do I show provisional tax paid on my ITR12?

Posted 17 July 2013

Where do I reflect on my ITR12 what tax I have paid over and above what got deducted by my company?
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