Where should I declare my freelance income?

  Written by Nicci   Posted 26 February 2016

I am an employee, but also a Sole Proprietor. I am an artist. My business is not officially registered yet, but I have been trading for some time now. Do I need to declare the income I earned through freelance work in the same ITR12 that contains the information I received from the IRP5 from my employer, or would I need to declare the freelance income in some other form?

Disclosing interest on the IRP6

  Written by Marc   Posted 26 February 2016

If a taxpayer earns 130,000 interest in the year, does he disclose the entire amount in the taxable income section of the IRP6 or just the portion of the interest income that is taxable. I,e 130,000 less R34500 exempt portoin. I see the form only deducts the primary rebate.

Does a 45-day old business still need to submit a provisional tax return?

  Written by Marc   Posted 26 February 2016

I am a salaried employee, but since the middle of January 2016 I have been running a business. It's been expensive to set up, and business is slow - I've turned over R50K max and have about R40K of expenses. Do I need to submit a provisional tax return now, or can I carry that amount over and declare it later in the 2017 provisional tax year?

Should I register for IRP6 or IRP3?

  Written by Marc   Posted 26 February 2016

I found two forms on the SARS site, IRP3 which states it's meant for freelance artists and IRP6 for provisional tax. I'm a freelance artist so should I fill in and resister for IRP6 or IRP3 or both?

Do I need to complete an IRP6?

  Written by Marc   Posted 26 February 2016

You sent me a reminder to file my IRP6 Provisional Tax Return for 2016 however, I'm not sure whether I am still a Provisional Tax payer?

I did freelance work until Feb 2015, and from March 2016 I've been employed, paying PAYE through my employer. I haven't earned any additional income. Do I still need to complete an IRP6 as a Provisional Tax payer?

Freelance work while paying PAYE

  Written by Marc   Posted 26 February 2016

I currently earn a salary and pay PAYE tax. I also take on occasional freelance work which isn't consistent amounts. What's the best way to be tax compliant?

Can invoicing several clients constitute a salary and not trade?

  Written by Marc   Posted 26 February 2016

I privately tutor pupils at their homes and invoice several clients for this service. One of them pays me a monthly salary (but pays nothing to SARS) based on monthly invoices and the rest I invoice by the hour. Can I declare all of this as a single salary and pay it with my ITR12 or do I need to register as a provisional taxpayer?

I changed from being employed (normal IRP5 scenario) to self-employed during the last financial year so I am not yet registered for provisional tax

Business runs at a loss - do I need to submit provisional tax return?

  Written by Nicci   Posted 25 February 2016

Another question - what if the business has run at a loss? It's a medical practice, and turns out many of my claims will only be processed in March 2016 i.e Next tax year. That means my total income for the business so far has been R30 000, with expenses totalling R50 000. Surely I don't have to submit a provisional tax return?

Can you apply for a deferrment or make a payment plan with SARS for provisional tax.

  Written by Marc   Posted 25 February 2016

Payment plan or deferment for Provisional Tax payers

IRP6: Additional Medical Expense Tax Credit & Taxable Income vs Turnover

  Written by Marc   Posted 25 February 2016

I've got 2 questions for my IRP6 form for tax year ending Feb 2016:

I am: provisional tax payer; and an individual - no dependents. 1. Is my taxable income the same as my turnover if I don't have any other deductions?

2. Is the amount that I enter into the Additional Medical Expense Tax Credit field literally all the medical expenses that I incurred in the period, which were not covered by Medical Aid?

How much of a capital gain should I be including for provisional tax?

  Written by Marc   Posted 24 February 2016

IRP6 2016-02: My income is trading income reflected through an IRP5. This year there is also a capital gain. On e-filing form I have to add the capital gain and fill in the total under "estimated taxable income". But then the full amount is taxed at my marginal income tax rate. How much of a capital gain should I be including in "estimated taxable income" for provisional tax?

Taking medical aid tax credits into account in provisional tax calculation

  Written by Nicci   Posted 23 February 2016

Hi there, I need some help completing my second provisional tax return. My employer deducts my medical aid tax credits (for myself and a dependent) each month on my payslip. Therefore, on my payslip each month is my gross earnings less my deductions (of which the medical aid tax credit is subtracted from the monthly PAYE amount due). However, at the bottom of my payslip, where it shows total tax paid to date figures, the amount here is the PAYE amount, BEFORE deducting any medical aid tax credit. My question is now when I submit my provisional tax return, do I enter the medical aid tax credits in the section provided for?...

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What type of tax for self-employed?

  Written by Nicci   Posted 23 February 2016

I am self employed by a british company that pays me directly into my bank account. What tax type do I fall into? I do not earn a large salary.

Am I a provisional tax payer if I am fully employed by a foreign Co but permanently reside in SA?

  Written by Nicci   Posted 22 February 2016

I have taken the test to see if I need to be a provisional taxpayer and it states that I should not. However, I am employed by a London-based organisation and am permanently resident in SA. I get a payslip every month and am on a permanent contract. I dont pay tax in the UK and SARS advised that I should do so as a provisional tax payer. Is this correct?

If I start a small psychology private practice after hours will I need to register for tax?

  Written by Marc   Posted 22 February 2016

Hi there, I'm starting a psychology private practice to build experience. I am already employed as a psychologist by a company but I want to add to my experience. Would I need to register for additional tax if I only plan to a couple of patients?

Declaration of interest earned on Fixed Deposit investments for tax purposes

  Written by Nicci   Posted 22 February 2016

Good Day, my question relates to the declaration of interest accrued (but not necessarily paid) on Fixed Deposit investments for income tax purposes. I am a provisional tax payer and prefer to pay the tax in the tax year in which the interest is earned. For example, if I start a 24 month fixed deposit on 1st January 2016, maturing 31st December 2017, interest (simple) payable at maturity then is it permissible to declare the interest as follows assuming for simplicity that interest accrues at R100. 00 per day:...

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Do I include the share scheme portion of my annual bonus for provisional tax purposes?

  Written by Nicci   Posted 19 February 2016

My question is about what to include in 'Turnover' from provisional tax purposes. If my annual bonus is partially cash and partially invested into a company share scheme, do I have to include the full amount in Turnover?

Non retirement funding income

  Written by Nicci   Posted 19 February 2016

If I earn more that R30 000 from non retirement funding income, do I have to register for provisional tax?

ITR 12 or IRP6?

  Written by Marc   Posted 17 February 2016

First of all I do have a tax number after working for an investment company a couple of years ago. I then resigned there and for the last three to four years not needed to pay tax. Currently I work for myself receiving three to four different income streams. All under my own name from research to maintenance. My question is: I now have to start paying tax again. The taxing income started on 1 Sep 2016, thus the first six months goes to end Feb. Do I need to submit a ITR12 or IRP6? And which pack...

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Apply RA tax deductible to provisional tax payment or get a refund after the final tax submission

  Written by Marc   Posted 15 February 2016

I am a provisional tax payer and contributing the maximum allowed deductible to an RA (15% of non-retirement funding income). I would like to know whether I can deduct this from the taxable income myself for the provisional tax payment, meaning I pay less to SARS now and do not get a refund later, or whether I should pay tax on the full income without deducting the RA deductible and then get a refund from SARS later on? If I have a choice, I would prefer not overpaying taxes to SARS and aim for ...

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Chairperson tax explained

  Written by Marc   Posted 15 February 2016

Please explain the following to me:
1. The taxation of non-executive chairpersons of small companies earning a monthly amount in directors (Chairperson) fees. (They work full time earning a salary from a different Company. )
2. Should the non-executive chairperson be treated as an employee on the payroll of the small Company whilst working for another company or can it be treated through normal finance department transactions?
3. Should the normal statutory deductions like SDL an...

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Medical rebates when without medical aid scheme.

  Written by Marc   Posted 12 February 2016

Provisional tax payer. Over 75. No med aid. What can I claim for medical expenses?

Tax free savings for the unemployed

  Written by Marc   Posted 9 February 2016

Wife has a hobby she runs from home for an income, not registered with SARS! Is she allowed to open a Tax-free savings account in parallel with me who is registered with SARS and also want to open this account. Thus can we together contribute R60K / year?

LOCAL SA RENTAL INCOME PLUS UK INCOME TAX PAID SEPARATELY

  Written by Marc   Posted 9 February 2016

i am 70 year old, live in UK, 95%, earning interest from investments in the UK and paying UK taxes with a UK tax no. i also have 3 properties in South Africa, and pay local tax in South Africa
from rental income. also have SARS tax no. are there new laws which i am not aware of? I have been submitting tax returns on this basis for the last 20 years with no problem. will this be ok for the future. thanks.

What are the penalties and interests paid for provisional tax?

  Written by Marc   Posted 8 February 2016

What are the penalties and interests paid for provisional tax?
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