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Income TAX for temp job with total income under tax threshold

Posted 26 January 2016 under Tax Questions

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Dani says:
24 January 2016 at 21:00

Will be registering with SARS for income tax this coming week. Doing a temporary job for January and February. 1. The business owner is telling me that will deduct 25% from the amount agreed, although for the two months (Jan and Feb) the total amount will be below the annual tax free threshold (R73 650)
Is this correct?

2. Will I be able to recover all the TAX, which will be deducted, when I submit the tax return for 2016?
(the actual amount is R63K and my tax will be friken R15 750 in total!)

3. How can I reduce or do not pay tax at all, rather to wait for the tax return, if it is recoverable in Point No:2 above

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TaxTimTaxTim says:
25 January 2016 at 21:46

Generally companies use a 25% PAYE deduction for temporary or independent work so this is in order.
Depending on what your earnings have been for the earlier part of the 2016 tax year (1 March 2015 - 28 Feb 2016) you should be able to claim this back provided you have not underpaid taxes on any other income in this year.

If you can prove that you fall into a lower bracket, you could ask the company to apply for a tax directive for you to withhold a lower rate of tax than the 25%.

Dani says:
26 January 2016 at 12:21

Thanks for the answer!

Just one clarification to the question:
This will be my first income and I will be registered with SARS only for just more than a month (from end of January 2016)

Will this income be considered for the whole 2016 tax year, although the registration will be done this week?

TaxTimTaxTim says:
26 January 2016 at 15:00

Yes, this will be your income for 2016 even though you only registering now.

Please Register for TaxTim and let us assist you to complete and submit your 2016 tax return in order to claim your refund.

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