Medical Aid & Car & Travel Allowance Questions

  Written by Marc   Posted 9 April 2014

Can an employer pay an employee for medical aid if its not medical aid through the company but rather on their own capacity? For example I have my own medical aid on my name. Can my employer pay me a set amount of R2000 every month for medical aid? What is the tax benefit of that, if any?

What is the difference between a car/Motor Vehicle allowance and travel allowance or are they the same thing? I don't travel for the company, but could I still get a car/Motor Vehicle allowance?

How are one-off payments taxed?

  Written by Marc   Posted 3 April 2014

I have just started working as a freelance copywriter however this is not my main source of income. The work is a side-line and sporadic thing. I am about to be paid for a job I've completed and would like to know how I will be taxed for the job- in other words I really want to know how much money I will take home at the end. Is there a way for me to calculate this?

Property Transfer Duty for Trusts

  Written by Marc   Posted 31 March 2014

If a trust is buying a residential property does it pay the same transfer duty as individuals? Further, if the trust was registered for VAT would that change the answer to the previous question in any way?

Do we need a tax directive to avoid paying PAYE due to working out of the country ?

  Written by Marc   Posted 31 March 2014

My husband works out of the country and in 2013 was in Moz for 63 consecutive days, meaning he shouldn't pay PAYE in SA. How is this worked out in the system? Should he be paying monthly PAYE, and refunded at year end, or does he need to apply for some sort of tax directive from SARS? He has been invoicing the company, who have paid him in SA but there are no payslips or PAYE deductions. Now we are applying for a homeloan, they want payslips.

I have to borrow money from a friend to make ends meet, how do I get back on track with my tax?

  Written by Marc   Posted 30 March 2014

I used to be permanently employed, paid the normal PAYE every month, and all that. I dutifully submitted my tax return every year and got my refunds from SARS very promptly. I then left the company and did a brief stint at another firm whose business was totally unrelated. I then decided to go on my own and start working as an independent. Things didn't go as well as I'd hoped and I didn't earn enough to support myself and my children, let alone, pay any tax. A friend has been helping me to make...

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Can I claim UIF for months unemployed before registering as a provisional taxpayer?

  Written by Marc   Posted 25 March 2014

I have just started my own business - well, technically I just freelance. Does this make me a provisional taxpayer.

In addition, I want to claim UIF for the months I was unemployed and not working (Dec, Jan, Feb). Can I still do this even as a provisional tax payer?

Provisional Tax Calculations?

  Written by Marc   Posted 24 March 2014

Hi there. I will as of the 1st of May 2014 be employed as an independent contractor to a company in Israel but will be based in JHB. Will I have to file provisional tax and how is this amount calculated?

Can I request a correction after ITR14 submission?

  Written by Marc   Posted 20 March 2014

I've submitted my ITR14 on 28 Feb 14, but then received a massive supplier invoice which would increase my COS & this would then decrease my PBT in essence I would qualify to get a refund from SARS, can I request a correction?

Tax on Voluntary Severance Pay?

  Written by Marc   Posted 19 March 2014

How is an employer suppose to handle a voluntary severance payout? What options must be chosen on application for tax directive. Does this falls under "Gratuities paid by an employer in respect of retirement, retrenchment or death" and will I be taxed accordingly?

What sort of tax should I register for as an independent IT contractor?

  Written by Marc   Posted 14 March 2014

I'm an independent IT contractor working from home. I work for different clients at the same time. Some pay a fixed fee.

What sort of tax should I register for taking into consideration that I use my house, electricity, internet, etc?

Can we combine our three taxpayers, i.e. my own, my wife and our family trust?

  Written by Marc   Posted 13 March 2014

I am a Sassa pensioner and also a property valuer working for my own account from time to time for agreed upon fees. My wife, to which I am married out of comm. of property, helps me with the travelling by driving me around in her vehicles. We pay for the fuel and services from my bank account as well as from hers and she pays for the insurance. Our accommodation and food on the road is a big expenditure. At home, which is owned by our children, we uses an office and pay rent for it. We also hav...

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Tax payable for one man business?

  Written by Marc   Posted 12 March 2014

My husband will now be starting to sub contract for his company, instead of being "employed" by them.

He will only supply labour. He will invoice them once every two weeks and the total monthly invoice will be R26,000.00.

Do we have to register his company and how will the tax work?

Which is the best way to maximise your return using the travel allowance?

  Written by Marc   Posted 11 March 2014

There are two ways to calculate travel allowance that is deductible. One is where you keep actual expenses and the other is where there is a table of fixed costs, maintenance etc depending on the value of the car. Which can maximise your refund? And can the capital value of the vehicle be deducted or considered besides for the purposes of determining running costs?

Can I declare extra income at the end of the year, or must I register for provisional tax now?

  Written by Marc   Posted 10 March 2014

If I did some freelance work in 2013 / 2014 tax year, will I pay a penalty if I only declare my extra income when I do my regular return?

I freelance now and again but have a very low monthly income. Do I need to declare & register?

  Written by Marc   Posted 7 March 2014

I love your business model, very innovative.

I have a full time job and started offering to do freelance web designing for people. I have been told some conflicting information about tax, from being taxed 40% on additional income to additional income not being necessary to declare if its non-recurring.

I have a full time job and don't charge much for creating websites and there is the recurring income of web hosting that I charge clients monthly. I probably create a site once a month for about R2000 and hosting comes to a total of R400 a month (for all the sites I host). So additional monthly income is max around R2400 and that is not every month....

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Do travel days count towards 183 days out of country?

  Written by Marc   Posted 6 March 2014

Do the days of travel to and from SA count as being out of country?

Can you deduct travel expenses to & from coaching as an independent contractor if you keep a logbook

  Written by Marc   Posted 27 February 2014

If you work 2 jobs - 1 part time with a salary (office job) and the other ad-hoc coaching of sports. Can you deduct travel expenses for the travel to and from the ad-hoc coaching? [I know you can't to and from the work place for the salaried job.]

And what other deductions can you make besides the medical tax credit?

Provisional Tax and charging Tax?

  Written by Marc   Posted 21 February 2014

If I were to open a small company (sole proprietership) doing plumbing work, would this make me a provisional tax payer even if its my only source of income? Also, on my invoices I would send out to clients for jobs done.. would I charge tax on these invoices?

SARS wants me to submit supporting documents, but the document list is empty

  Written by Marc   Posted 20 February 2014

I think SARS owes me a refund because my ITA34 reflected a negative number and said "refund due to you". Anyway they are now giving me grief, disputing my refund and demanding I respond in 21 days by sending me a "Final Request to Revise Income Tax Return or Submit Relevant Material". However in this document they say: "In the event that you couldn't find an error, you also had the option of submitting to SARS copies of the following material in support of the declarations made in your income tax return:" This is followed by an empty document list. ...

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SARS requesting private km and logbook for everyday of the year in addition to business travel?

  Written by Marc   Posted 18 February 2014

I'm claiming tax on my travel allowance and submitted my logbook based on the SARS logbook. Earlier today I was notified that my travel claim is disallowed. When I called them they said I should add my personal travel and mileage for everyday of that tax year. Is this normal? I thought SARS was only interested in business travel.

What is the PAYE formula?

  Written by Marc   Posted 17 February 2014

Mr ab is paid a monthly salary of R20 000 as well car allowance of R2 500. He belongs to company pension fund and contribute an amount equal of 7.5% his basic salary. The company does the same. He is also member of medical aid and his total contribution is 2100 of which the company contributes half.

How do you calculate this?

Primary rebate automatically deducted for freelancers?

  Written by Marc   Posted 30 January 2014

I am a freelancer. If I eFile my return is the primary rebate automatically deducted from my income before the tax amount is calculated. Or do I have to deduct it myself?

tax rebatre for branded vehicles

  Written by Marc   Posted 23 January 2014

What are the rules regarding company vehicles and branding of company vehicles, is there a tax benefit to the driver of a company vehicle if it is branded?

Am I a Personal Service Provider for Tax purposes?

  Written by Marc   Posted 18 January 2014

I earn R700,000 in my personal capacity at client A and 300,000 through my CC at client B.
I render the services for my CC personally and more than 80 percent of the fees received by the CC are received by one client. Would my CC be regarded as a personal service provider even though I earn 700,000 separately in my personal capacity?

Removing uploaded documents off sars e-filing

  Written by Marc   Posted 17 January 2014

Is there a way to remove supporting documents that I have uploaded on the SARS eFiling website?
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