Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Employing a relative



Bev says:
14 March 2016 at 10:05

I pay provisional tax and have 2 contractors to whom I pay FEES (commission) on sales leads that they generate for me. My question is: I wish to use the services of my daughter-in-law (same surname as mine) in a similar capacity so will SARS see this as shifting my tax burden to avoid a higher bracket or will I be allowed to book this family member as a legitimate earner in her own right?
I would maintain a payments register and her fees would be paid over periodically to her banking account. I read somewhere that one cannot employ a family members in your business???

TaxTim TaxTim says:
14 March 2016 at 10:21

This should not be a problem with SARS as long as you maintain a proper audit trail (i.e. she invoices you for her fees) and the fees you pay her are market related and consistent with your other contractors.

This entry was posted in Tax Q&A and tagged , , , , . Bookmark the permalink.




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

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.