I'm about to do my first tax return, I'm registered as Individual tax payer but have been doing freelance work on an invoice basis. I did not realise that in this case I would need to be registered as a provisional tax payer instead. Am I correct in saying that I should be registered as a provisional tax payer?
How do I proceed from here? - I should have done two IRP6's and made payments. - Then I should also do a ITR12, which is then only due in January 2016 What do I do regarding the outstanding IRP6's? Should I change my SARS eFiling account from individual to provisional tax payer?
I have started a regular job in March of this year where my tax is contributed through PAYE, so for the current financial year I would be a a Individual tax payer which makes it a lot easier. I am plainning on signing up for the TaxTim service as soon as I know how to proceed with this. It would save me a lot of time in the future.
However, if you have not filed your provisional tax returns in August 2014 and February 2015 it would be better to not do so now, as there will be late filing penalties. Rather just file your 2015 tax return (ITR12) and declare your earnings and related expenses within the section "Local business, trade and professional income". You will probably receive a penalty and interest for the underpayment of provisional tax though.
If you no longer freelance, and are now a salaried employee, then no need to register as a provisional taxpayer but remember you will need to for future should your situation change (even if you continue to earn a salary but do some freelancing as well, you will need to register as a provisional taxpayer).
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