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Am I and independent Contractor or a Bookkeeper for tax purposes; can I deduct a pc course as an exp

Posted 18 August 2015 under Tax Questions



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Bookkeeper says:
14 August 2015 at 20:40

I am a bookkeeper for 2 entities with the same directors, but different company and tax numbers. I invoice a fixed fee per month, but split it based on the pro-rate turnover per entity. I work form my study although I also do visit their office especially certain periods during the month - ie mid-month for invoicing and month end to balance the books. Question: Does this mean I am an Independent Contractor? Is this applicable for the 80/20 split as an independent contractor? Do they have to deduct tax from me on a monthly basis?

Question: Am I allowed to deduct an Excel Course as an expense?

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TaxTimTaxTim says:
17 August 2015 at 17:45

Do you receive 80% or more of your income from one of them?
Are you perceived by the organisation as an "employee" i.e do they control your hours; do you report to a manager; can you take on additional work with anyone else; do you have employment contracts with these companies?


Bookkeeper says:
17 August 2015 at 21:26

The income received is on average a 32%/68% split between the 2 companies.
My hours are not controlled but a certain level of output within certain deadlines are expected, ie invoices distributed by the 15th of every month; board pack with management reports are distributed by the 10th of every month.
I do not report to a single specific manager but to shareholders and a board of directors.
Yes, I am able to take work with anyone else.
I do not have an employment contract but a contract which is reviewed every 6 months to perform certain functions.

I still need to know whether I am able to claim an Excel course (R5,5K) as part of my expenses, please?


TaxTimTaxTim says:
18 August 2015 at 12:30

Based on your response, it seems feasible that you are viewed by SARS as an Independent Contractor. You would need to complete the Local Business section of your tax return and include your income earned and all related expenses (eg. the excel course you mention)


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