I am the financial manager of an insurance company and one of the employees has asked me to prepare a letter as requested by SARS. The letter is to motivate as to why the home office of the employee should be allowed as a deduction.
I would like to know what I need to include in the letter to make sure that the information is 100%.
The office at home also needs to be a completely separate room specifically for work purposes and can have no other use.
LaChikasays: 23 January 2013 at 16:39
Thanks. I have forwarded your response to the employee and come back to you if he has any other further queries.
TaxTimsays: 23 January 2013 at 16:50
Please do and I will be glad to help!
LaChikasays: 23 January 2013 at 17:12
The employee did the test and the end result is yes, that he can claim.
TaxTimsays: 24 January 2013 at 19:19
You need to write a letter stating that the employee is allowed to work from home and that this is included in the contract and on what basis. Also that he is paid commission and what percentage of the overall amount paid to him is commission vs salary.
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