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

Posted 5 January 2015 under Tax Q&A


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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?

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TaxTim TaxTim says:
6 January 2015 at 9:08

No you cannot do this as you an employee of the company. If more than half your overall income comes from commission then you will be able to deduct business expenses such as business travel and laptop depreciation against the commission which will reduce your tax payable.


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235 DAYS
LEFT OF
TAX SEASON
2017


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started