I receive a salary per month and pay my usual taxes. I am assisting a friend on a monthly basis with his business in my spare capacity. He pays me per month R4 700.00 consultation fees and would like to be invoiced for that. I am not registered as a business, what are the tax implications for me.
You would pay tax on the R4 700 per month at your marginal SARS tax rates for 2014 which means whatever bracket you fall into at that percentage. So add up all your income in total and apply it to our Tax refund calculator to determine your overall tax payable or if indeed you could be due a refund due to other expenses.
You can deduct all business expenses in earning that income. ONLY business income directly related to earning that income.
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