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Getting a Salary vs Invoicing the Company?

Posted 6 January 2015 under Tax Q&A


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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

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TaxTim TaxTim says:
8 January 2015 at 9:08

This cannot happen as you will be a full time salaried individual and the employer needs to deduct PAYE each month. They cannot get around this.

Bert says:
8 January 2015 at 9:38

Thank you for the reply.

Just to clarify, it is a very small business with only two employees and one director. does this make a difference? Is there no other way of declaring PAYE myself?

TaxTim TaxTim says:
8 January 2015 at 19:18

Unfortunately not, if you are deemed an employee which it sounds like you are then the business has a responsibility to deduct PAYE and pay it over to SARS.


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Small
Business
Tax Returns
Made Easy


TaxTim will help you:

 Do Your ITR14 Tax Return without a Tax Expert
 Claim for all the Deductions your Business Qualifies for
 Turn your Accounting Records into a Tax Return

TaxTim asks you simple questions about your business, then processes your answers and completes your ITR14 business tax return instantly.

Get started