What allowable deductions does a Pilates instructor qualify for?

  Written by Alicia   Posted 30 May 2016

I am a Pilates instructor and earn a commission from the studios I work at and I do my own invoicing for clients I see outside of the studio. The later I am self employed as I understand it. I only started working in South Africa in Aug 2014. My 2015 tax return was done by an accountant. I understand that being self employed and a commission earner I can deduct expenses directly related to earning an income such as:

- Vehicle expenses
- Phone expenses
- Education and training...

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Will SARS penalise me for outstanding tax returns?

  Written by Alicia   Posted 30 May 2016

I'm not sure if I disappeared under the radar for some time now due to generating my own income for years barely surviving and then going bank. At that stage I was a provisional tax payer. Years down the line I did contract work making ends meat. I eventually got a secure job since 2013 - probably not earning enough to register as a tax payer in order to submit tax returns? However I think this might be a different scenario now.

Can I claim medical aid payments if my husband is the primary member?

  Written by Alicia   Posted 30 May 2016

Can I claim on my medical aid payments as a deduction being self employed when my husband is the primary member? The payments cover both of us. Lastly we have a life insurance policy which includes disability and dreaded disease. Can I deduct this payment or a portion of it?

CODE 4001 opposed to CODE 4002

  Written by Alicia   Posted 30 May 2016

Under your retirement heading you mention a code 4002 for pension fund contributions. I do not have 4002 but 4001 as my pension fund contribution on my IRP5.

Loan to parents

  Written by Alicia   Posted 30 May 2016

I loaned my parents money to purchase a vehicle in December last year. As my mum was going to be the primary driver, it was registered in her name. It was agreed though that my dad would repay the loan at some point in the future when they dispose of their current property. This was obviously an informal agreement but I am concerned that SARS will see this as a "donation" rather than a loan. Is there anything I can do to prevent this from being viewed as a "donation" and having to pay donation ...

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Does a capital gain force me to submit a tax return?

  Written by Alicia   Posted 30 May 2016

I have received an Allan Gray IT3(c) tax certificate for capital gain/loss for 2016 for R 121556,98. Do I have to submit this to SARS tax return as am retired

Employed by a foreign company, and need to pay over my own tax, how much will it be?

  Written by Alicia   Posted 30 May 2016

I've recently become a contractor to an overseas company, I've been informed, that I have to pay my own income tax. I send them invoices. My monthly invoice fluctuates between 22000 and 30000 as I get paid on a daily basis. I don't get an IRP5, and I pay my own medical and recently setup my own RA contribution. I need to pay my tax. When and how much do I need to pay. I've been a contractor for them from January 2015 to now May 2016

Deposit of foreign income into South African bank account, is it taxable?

  Written by Alicia   Posted 27 May 2016

If I am working outside the country and wanted to send a large sum of money as a deposit for property within South Africa what are the Tax implications if any. I believe that because it is a large sum of money that it would need to be declared to the South African Reserve Bank beforehand.

Am I tax liable if I did not earn an income in South Africa?

  Written by Alicia   Posted 27 May 2016

I relocated to the Netherlands in 2003 for work on a 2 year contract. When I left South Africa I completed a form to state that I will be out of the country for this time. After the 2 years I tax returned for 6 months but did not work. I tax returned to the Netherlands and have been working here ever since. I have been paying income tax since I have been working here.. I also own a property in South Africa which I purchased in 2006. My question:we (my husband is also South African) is considerin...

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Can I still update my new address with SARS?

  Written by Alicia   Posted 27 May 2016

I worked at one company up until September 2015 and started at a new company in September 2015, when I moved to my new company I also moved house so on my previous employers IRP5 submission it has my old address and on my new Employers IRP5 it has my new address. If 2 IRP5's get submitted to SARS with conflicting addresses to SARS will this have any implication for me?

Tax on part time work

  Written by Alicia   Posted 27 May 2016

I am currently employed and my employer pays PAYE. Recently I undertook small part time jobs probably totaling around R40 000 income for the financial year. Do I need to register as a provisional tax payer, or can I declare this additional income under the local business section of my SARS tax return?

Can I deduct salaries I pay from my unrelated salary for income tax purposes?

  Written by Alicia   Posted 26 May 2016

Hi, I have a quick question, I am a permanent employee of a company and earn a monthly salary from which I pay medical, pension and pension fund, all deducted straight from my salary. I in turn have two people employed by me on a permanent casual basis, they are paid roughly R2500 each per month, could I get a tax deductions for this?

what expenses can i claim if I own a taxi?

  Written by Alicia   Posted 26 May 2016

If I own a second vehicle and use that second vehicle 100% as a Taxi. Would the tax be payable on only the income or payable on income - (minus) expenses?

For example, monthly costs breakdown as follows:

Expenses: Vehicle Repayment Costs - R1500 / Vehicle Insurance: R1100 / Vehicle Tracking Costs: R100 // Total: R 2,700. 00

Income: R 8,000. 00

Income (R 8,000. 00) - Expenses (R 2,700. 00) = R 5,300. 00

My question is. Would I pay tax on the income of R 8000 before deducting expenses...

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How does one declare and pay CGT?

  Written by Alicia   Posted 26 May 2016

If you are a shareholder of a company and the company has sold out a chunk of its shares... And due to this a pay out will be made to each shareholder.. I own 2% of the company. I am told I will get a pay out of R60k what will be my CGT amount more or less?

Can I claim for travel expenses without any records?

  Written by Alicia   Posted 26 May 2016

I am a freelancer which I started in June 2015
I did not keep a log book
am I still able to do any sort of travel claim as I spent most of my time driving out to clients

Is money received from an NPO taxable?

  Written by Alicia   Posted 26 May 2016

A friend of mine receives money from a NPO regarding admin services performed to that NPO. Should it be included in her gross income?

PAYE due on my pension fund withdrawal?

  Written by Alicia   Posted 26 May 2016

I've just resigned and waiting for my pension fund to be paid out which is 77000 what tax am I going to pay on that amount or not?

Can I still pay UIF if I dont have a tax number?

  Written by Alicia   Posted 25 May 2016

I have been working for 2years now and my employer gave me a Employee Income Tax Certificate(IRP5). I don't have a tax number but there's deduction for UIF,I would like to know where is that money going to

Am I really an independant contractor?

  Written by Alicia   Posted 25 May 2016

I am soon to start with a company which has listed me as an independent contractor. - I will be working from home after my initial 6 week training/trial period. - I will go to business meetings. - My main earnings will come from this company
- They reimburse for internet, phone and training course up to a certain amount. - They say in the contract that they will not pay PAYE, UIF or anything like that. - I am to invoice them at the end of every month
- I have no indication of leave days in the contract...

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Am I able to claim additional medical expenses?

  Written by Alicia   Posted 25 May 2016

Hello - I am 52 years old - I have a medical aid - a discovery coastal saver - essentially a hospital plan with a portion of my my premiums going into a savings account every month. I understand that I get a rebate based on my premiums paid. I am trying to understand what constitutes a qualifying medical expense. If money is taken form my medical savings account (which is effectively my money) do these expenses count as "qualifying" - my accountant has told me that only if I spend more than a c...

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Medical aid gap cover

  Written by Alicia   Posted 25 May 2016

What about medical aid gap cover, can I add this to my total for the tax year? I. E. Adding it to the total of what I paid for during the tax year on my medical aid.

Maximum tax deductible contribution towards a RA

  Written by Alicia   Posted 25 May 2016

I am trying to work out the maximum tax deductible contribution to a Retirement Annuity. Person earns R1 000 000 of which 75% is pensionable. Total contributions to pension fund is 13%. He made a capital gain of selling shares at R150 000, received rental income of R180 000 with R50 000 deductible expenses. I'm confused on how to work out this question. It states that max deduction for a RA is 15% of non-pensionable income. I get R250 000 R150 000 R130 000 = R530 000 x 15% = R79 500. However...

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Not a South African resident, but have a local investment, do I need to pay tax?

  Written by Alicia   Posted 25 May 2016

I'm a dual citizen having both South African and British citizenship. I have worked all my life in UK and am in full time employment under a contract with UK employer. I tax return to South Africa once every year and stay for a holiday between 4 to 6 weeks. If I invest in a fixed rate account of some R500 000 over 5 years, am I liable to pay any tax on that investment product as I'm not ordinary resident in South Africa for tax purposes not indeed even have a South African tax number

5 Great Reasons to File Your Tax Return Early This Year

  Written by Vee   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...

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No payslips, no proof of PAYE being withheld

  Written by Alicia   Posted 24 May 2016

Good evening, My fiance has been employed by a small business as from the 1st of February 2015. His employer does not provide him with payslip nor did they provide him with an IRP5 when we needed to do his tax submission. When we submitted his tax returns for tax period 1st of March 2014 to 28th of Feb 2015 we had submitted the month of Feb 2015 blank and only stipulating the company's name. As another tax period is coming up, and no payslips can be provided to SARS, what does my fiance do. I wa...

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