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Tax implication working as a consultant

Posted 16 October 2015 under Tax Questions



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Ingrid says:
14 October 2015 at 13:56

If I earn a salary that's taxable plus an amount working as a consultant for a different company what is that tax implication on the extra amount earned as a consultant?

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TaxTimTaxTim says:
15 October 2015 at 15:53

These extra earnings would be added to your salary income and then you would be taxed on your combined income per the normal tax tables for individuals.

Is tax withheld from your consulting income?


Ingrid says:
15 October 2015 at 16:23

I basically help out at one company and they pay me a fee monthly - no tax on it doesn't fall in the deductible tax bracket. I do get charged tax on the company where I am permanently employed as I get a much higher salary from them. Two different companies that is paying me. So I need to know what I need to do as an individual regarding the extra money that I get, despite my normal monthly salary


TaxTimTaxTim says:
15 October 2015 at 17:16

If you earn income from a source other than a salary, and certain conditions are met, you should register as a provisional taxpayer.
Am I a Provisional taxpayer?

Please read our blog on What is Provisional Tax? How and when?

Your additional income should be declared on your Tax Return as "Local business, trade and professional income".

Please Register for TaxTim and let us assist you with your Provisional Returns and Tax Return filings.


Ingrid says:
16 October 2015 at 8:44

Thank you for the information, I have read through the info regarding "are you a provisional tax payer" the extra amount I earn is R4500.00 pm - I have been earning this amount since June this year (based on a 12 month calculation - the annual income would only be: R54000.00, would I still have to register for provisional tax?


TaxTimTaxTim says:
16 October 2015 at 14:33

Yes, you would as your combined income (salary plus extra income) is greater than the tax threshhold of R73,650 for the year. SARS does not tax each income source separately but rather calculates tax on your entire income for the year which would be above the tax thresshold.

Please Register for TaxTim and let us assist you with completing your Provisional Returns and Tax Return for the year.


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