31 March 2022 at 9:04
Hi there, I need some advice. I currently work full-time but will be going freelance from April. I have already started some freelance work on the side, and wanted to know how I should go about paying tax for this? Most of the Freelance work I am doing is on an online website (for countries all around the world) and I transfer the funds into my bank account each month. No tax is taken off of this by the website, so I wanted to find out how I should go about paying tax, would it be a monthly or yearly thing etc? Should I just put money aside for it? I am clueless about this sort of thing. One of the freelance contracts I have from April will be taking PAYE off for me, but for the other online work I have to sort out myself and the thought gives me heart palpitations! Any advice on how I should approach this?
31 March 2022 at 10:15
Your 2016 tax return will look a bit different as you will have an IRP5 on it to show the PAYE you paid and a section where you need to add your freelance income (you can add it altogether if it’s for the same type of work) and you can claim the expenses you incurred while generating this income. Expenses could be bank charges, internet costs, electricity, interest on your bond or your rental you paid for the year and any other costs you incurred. You will need to register as a Provisional taxpayer and pay tax twice a year on your freelance income, this should help lighten the tax burden once tax season starts. Provisional tax is the tax that you paid over to SARS 2 or even 3 times a year, it is for people who do not have a conventional employer who can pay the tax due on their income over to SARS.
Please read our blog on provisional What is Provisional Tax? How and when?
Am I a Provisional taxpayer?