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Salary / IRP5: 10 most popular posts


Do You Need to Ring-Fence Your Business or Rental Losses for Tax?

Posted 10 October 2018

When pursuing a business activity, trade or renting out a property, you’re no doubt doing so to make some money, but the reality for self-starters is that there’s a good chance it’s going to take some time for your venture to break even, which can often mean facing a loss.

Your additional income is of interest to SARS as it translates into more tax revenue for them, so how do you record your loss to them? And when, how and where is the loss applied from a tax perspective?

Read more →

Why is SARS asking me for outstanding tax returns?

Posted 9 October 2018

Why is SARS asking me for outstanding tax returns?

When did this happen?

Previously, assuming that SARS did not request any documents for verification and everything for the year was accepted, refunds due were typically paid out quite quickly to taxpayers within 1-2 days.

From 2015, SARS has implemented a new requirement that ALL tax returns, since the first year a taxpayer registered for a tax reference number, must be submitted before any refund is paid out.

...

Read more →

Multiple Employers, Multiple PAYE payments. Yet I still owe SARS?

Posted 3 October 2018

Multiple Employers, Multiple PAYE payments. Yet I still owe SARS?

We receive many questions to our Helpdesk from taxpayers who are faced with the following scenario:

They work for two employers during the year, perhaps even at the same time and earn income from both. Each employer deducts employee’s tax (PAYE) from the taxpayer’s salary every month and issue them with an IRP5 after year end. They submit these to SARS in their Tax Return, however they receive a nasty surprise when they receive their Tax Assessment which indicates that they have not paid enough tax during the year and have a big bill to settle...

Read more →

5 Reasons you Still Need to File your Tax Return in 2018

Posted 4 September 2018

5 Reasons you Still Need to File your Tax Return in 2018

SARS, once again, has  communicated that if you earn less than R350,000 in a year, and fulfil a series of complicated criteria, you may not have to file a tax return in 2018.

However, we advise you to take GREAT CARE here, and understand your duties properly, because if you don't, you may suffer for it later on.

Here are the top 5 reasons why not to skip filing your tax return this season:

Read more →

Why have I received a smaller tax refund from SARS this year?

Posted 24 July 2018

Why have I received a smaller tax refund from SARS this year?

We receive many queries from confused taxpayers who are disappointed to see their tax refunds are smaller than the refund received last year. Often, on the surface, their income and expense situation appears unchanged, so how can this be?

If you are one of these unhappy taxpayers, read on to see some common reasons why your tax refund could be less than last year.

Carried forward retirement contributions

This one is not obvious at all and confuses many taxpayers...

Read more →

Medical Aid Tax! How SARS' new changes affect YOU!

Posted 8 July 2018

Medical Aid Tax! How SARS' new changes affect YOU!

In 2012 SARS began making changes to how medical expenses were treated for tax purposes. The system at that time created a higher benefit for deducted medical expenses if you earned a high income (bad news for low income earners) and the changes since then have sought to make medical deductions more equal across various income levels.

Basic summary of how SARS calculates your tax

Income Earned
Less: Expenses / Deductions
= Taxable Income
x SARS tax rate ...

Read more →

What to expect in 2018 after submitting your tax return to SARS

Posted 1 July 2018

What to expect in 2018 after submitting your tax return to SARS

As soon as tax season opens in July, many taxpayers rush to submit their ITR12 tax returns as early as possible, eagerly hoping for a nice refund. After the rush, when nothing happens, they often ask us what is happening to their refund? In most cases where an income tax refund is due to a taxpayer, SARS pays it out within one or two days...

Read more →

How to calculate totals under source codes 3696 and 3699 for 2018

Posted 13 June 2018

How to calculate totals under source codes 3696 and 3699 for 2018

Perhaps you just tried to submit your tax return and you instantly got an error relating to 3696 and 3699. As frustrating as it could be, don’t worry the error can be fixed. Maybe, you might have just simply left an amount out. Let’s have a look at what you should do, in order to crack these codes correctly – in that way making filing much more easier for you. 

You’ll need to check your IRP5 to make sure you answered TaxTim's questions for these amounts correctly...

Read more →

How to calculate totals under source codes 3696 and 3699 for 2017

Posted 12 June 2018

How to calculate totals under source codes 3696 and 3699 for 2017

Perhaps you just tried to submit your tax return and you instantly got an error relating to 3696 and 3699. As frustrating as it could be, don’t worry the error can be fixed. Maybe, you might have just simply left an amount out. Let’s have a look at what you should do, in order to crack these codes correctly – in that way making filing much more easier for you.

You’ll need to check your IRP5 to make sure you answered TaxTim's questions for these amounts correctly. Your IRP5 can show one or more amounts with source codes describing the income you received from your employer that year. ...

Read more →

Ways to get your IRP5 from your employer, if you haven't yet received it.

Posted 14 May 2018

Ways to get your IRP5 from your employer, if you haven't yet received it.

You may be employed by someone, but for one reason or another- you don't receive an IRP5 and no amount of begging of pleading will result in one being produced. If you're one of these “IRP5-less” individuals, this shouldn’t keep you from completing your tax return don’t despair or give up on completing your tax return. There’s a few reasons why you people often find themselves without their IRP5 and we’ve highlighted these below for you, read on to find out if any of these apply to you and if so, what to do about it....

Read more →

The 3 R's: Returns, Rebates and Refunds Explained

Posted 10 May 2018

The 3 R's: Returns, Rebates and Refunds Explained

When it comes to tax jargon, most people prefer to bury their heads in the sand instead of trying to understand all the confusing terms that tax practitioners use. Taxpayers just want to do their tax quickly and easily, and if they’re due - receive some money back from SARS. A lot of confusion surrounds the process, but by understanding three simple terms you can make tax season a little bit easier.

Read more →

10 Tips to Pay Less Tax

Posted 25 April 2018

These tips are part of TaxTim's personalised recommendation tool called the Tax Health Score. Once you file your tax return with TaxTim, we analyze it and produce your own unique Tax Health Score which recommends how you can optimize deductions, pay less tax and maximize your potential refund in the future.

The tips below cover all possible recommendations and may not be applicable to your individual tax situation. The only way to know which ones apply to you is to use TaxTim to complete and submit your tax return....

Read more →

Budget Speech: VAT rises by 1%, predictions were correct!

Posted 21 February 2018

Budget Speech: VAT rises by 1%, predictions were correct!

Taxpayers should breathe a sigh of relief as a much lower than expected R36bn in increased taxes was announced by the once-off Minister of Finance. The biggest news amongst the increases was the VAT rise of 1%. For the first time in 25 years, all South Africans will see most goods and services become a little bit more expensive thanks to the Value Added Tax rise. Although controversial, a VAT rise was much needed and will bring in almost R23...

Read more →

I worked for less than a year: Do I still need to submit a tax return?

Posted 10 November 2017

I worked for less than a year: Do I still need to submit a tax return?

If you worked for less than a year, you may be confused as to whether or not you are required to submit a tax return. It seems like a tedious task for someone who only worked for a few months of the year and was unemployed for the rest. However, the answer is YES, you must definitely submit a tax return, even if you’ve worked for less than twelve months.

The reason is that, if you only worked for a few months of the year and paid tax, it's likely that you are due a refund. Read some other reasons here, why we recommend you always submit a tax return....

Read more →

Who's (Legally) Allowed to File Your Tax Return?

Posted 12 October 2017

Tax isn’t the easiest of subjects to navigate. Besides the long list of legalese to master, there’s the fact that tax legislation evolves year on year. What was applicable on your tax return 2 or 3 years ago, isn’t necessarily valid on your next, and what’s right this year, may change next season.

It’s unsurprising then, that when faced with the daunting task of filing their annual tax return, many people turn to a friend, colleague or trusted broker to help them out, in the hope that they’re more proficient...

Read more →

IRP5 FAQs

Posted 22 February 2017

What is an IRP5?
An IRP5 is the employee's tax certificate that is issued to him/her at the end of each tax year detailing all employer/employee related incomes, deductions, and related taxes. The employee uses it specifically to complete his/her income tax return for a specific year.

Do I need an IRP5?
Yes, you do if you were employed during the tax year.

Can I submit a return without an IRP5? OR Am I able to submit returns without my IRP5? OR Are you able to submit without the IRP5?...

Read more →

2017/2018 Budget - The rich are going to pay more, but what does that mean for the rest of us?

Posted 22 February 2017

2017/2018 Budget - The rich are going to pay more, but what does that mean for the rest of us?


Personal Tax Rates (rates below)

Individuals across the country, those qualifying above the new tax threshold of R75 750 (previously R75 000) will be paying increased taxes of R16.5bn (previously R5.65bn in actual tax increase) for the next tax year, most of this will be for high income earners, however. Taxpayers generally across the board will be earning the tiniest bit more money each year as their tax brackets...

Read more →

Promised a Guaranteed Tax Refund? Be Afraid - Be Very Afraid

Posted 16 September 2016

Promised a Guaranteed Tax Refund? Be Afraid - Be Very Afraid

Guarantees are pretty powerful – they’re used by leading manufacturers and retailers to gain our confidence and trust. We’ve all come across them at some point or another: “Life time guarantee”, “money back guarantee”, “product satisfaction guaranteed, or your money back”. They’re a promise. A promise that your purchase will provide you with a level of value, or a return on your investment. While a guarantee is common – expected, ...

Read more →

Food for Thought on Subsistence Allowances

Posted 13 June 2016

You’ve been up since 4am in order to catch yet another red-eye flight for a 9am business meeting - 1,400km away - and you’re already onto your third coffee by the time you board the plane. While you’re fairly accustomed to the frequent business trips requiring out of town travel, you’re still somewhat confused by the tax implications of the subsistenc...

Read more →

Sole Proprietor or Company: What's Best for Tax?

Posted 31 May 2016

Getting a new business venture off the ground is an equally exciting and stressful time. You’re enthusiastic about getting your new product or service out into the market, but you face quite an administrative process to get it off the ground legally.

A decision that often stumps many small business owners is whether to operate as a sole proprietor or as private company, a PTY Ltd. We receive many questions about this from entrepreneurs wanting to know the tax implications of each route.

Read more →

5 Great Reasons to File Your Tax Return Early This Year

Posted 24 May 2016

Are you the type of person dashing into the store to grab a birthday gift en route to a party? Or perhaps you’ve found yourself scratching through your craft box at 11pm the night before to make a ‘World Book Day’ outfit for your son? Or possibly you’re one of the hundreds of thousands of South Africans who waits until the last week of November to file your tax return?

While I’m not suggesting that every minute of your life needs to be pre-planned and organised, there are certainly a number of benefits to getting your tax done early...

Read more →

Tax on Bonus Payments: How Does it Work?

Posted 19 April 2016

For those fortunate enough to receive bonus payments as part of your remuneration, you’ll understand the frustration of seeing one amount on your letter of bonus, but a dwindled amount reflecting in your bank account on payment.

We receive hundreds of queries from people with regards to what percentage tax they’ll have to pay on a bonus they’ll be receiving, either annually or as an adhoc performance bonus. Much like other variable incomes, such as commission, there’s a misconception that tax on a bonus payment is withheld at a higher rate.

The fact is that there’s no special ‘bonus tax rate’...

Read more →

How is Commission Taxed? 3 Ways Your Company Taxes Commission

Posted 14 April 2016

Our helpdesk receives hundreds of questions related to tax where commission is involved. A misconception that comes up time and time again is that people believe commission is taxed at a higher rate than what a fixed salary is.

This isn’t true!

Tax on commission is at exactly the same rate as a fixed salary.

The confusion comes from the fact that tax is calculated on a different amount each month (depending on your performance, of course), and this can result in different tax rates being applied month to month...

Read more →

The Smart Way to Save Tax when Renting out a Property

Posted 8 April 2016

Taxpayers who earn rental income from a second property of theirs often don’t know what they need to do when it comes to declaring this income to SARS. Sometimes taxpayers think that they don’t have to declare this extra income, or can hide it from SARS by not entering it on their tax return form - a big mistake!

The truth is that extra income earned from rental is taxable, and SARS needs to know about it. In some cases - if the amount earned (profit) outside of a salary...

Read more →

What Medical Expenses Can You Claim Back from Tax

Posted 17 March 2016

Medical expenses are nothing to sneeze at. Private medical treatment is increasingly pushing the limits of medical aid scheme benefits and our wallets. It's an outlay few can avoid. Luckily, certain medical expenses come with a bit of tax relief in the way of tax credits.

A tax credit is a non-refundable rebate. This means that a portion of your qualifying expenses, in this case medical related spend, is converted to a tax credit, which is deducted from your overall tax liability (the amount of tax you have to pay SARS)...

Read more →

Older posts →  1  2  3

Blog Categories


Submit your
tax return
right here!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started