Do I file a provisional return for a sole proprietor that I started in January?

  Written by Nicci   Posted 26 April 2024

I started as sole proprietor in January this year. Do I still need to file a Period 2 provisional tax return (IRP6) this February? The questions on Tax Tim are asking for the whole financial year (i.e from March last year until the end of February this year). Do I then just calculate the income and expenses for January and February of this year?

Tax on my travel allowance

  Written by Nicci   Posted 24 April 2024

My employer is satisfied that only 60% of my travel allowance will be for business purpose, do I only include the 60% in my monthly payslip for PAYE purposes or do I revert back to the 80/20 rule?

What percentage tax does a person as a consultant pay?

  Written by Nicci   Posted 23 April 2024

I have been offered a job as a part time consultant. The company says that I must pay tax directly to SARS. How much tax will I have to pay directly to SARS?

I work two jobs - can I claim internet for both?

  Written by Nicci   Posted 23 April 2024

I work two jobs as an independent contractor in addition to my full-time salary. I use the same fibre internet connection for both these jobs which is debited on a monthly basis. Am I correct in saying I can only claim for it once on my tax return, and not twice for both jobs?

Then I also want to know if my TaxTim payment is deductible? 

Top Questions on Income that is not taxed

  Written by Nicci   Updated 20 March 2024

Exempt or non-taxable income refers to certain types of income, which is not subject to income tax.

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Do You Need to Ring-Fence Your Business or Rental Losses for Tax?

  Written by Vee   Updated 19 March 2024

When pursuing a business activity, trade or renting out a property, you’re no doubt doing so to make some money, but the reality for self-starters

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Food for Thought on Subsistence Allowances

  Written by Vee   Updated 19 March 2024

You’ve been up since 4am in order to catch yet another red-eye flight for a 9am business meeting - 1,400km away - and you’re already onto your third coffee by the time you board the plane.

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Top Tips for Sole Props

  Written by Nicci   Updated 22 January 2024

1. Keep an accurate record of revenue and expenses

You can draw up these records by way of a simple spreadsheet based on your invoices and then confirm these amounts by cross-checking them against your bank statement.

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Send me tax number

  Written by Chantill   Posted 18 January 2024

Please send me my tax number

What to do if your tax return was rejected by SARS

  Written by Alicia   Updated 22 November 2023



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Why does SARS require manual intervention to finalise my return?

  Written by Marc   Updated 21 November 2023

When a Tax Return is filed usually SARS issues an immediate assessment (ITA34), however sometimes they do need to do a further manual check on their side.

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Don't file on SARS eFiling before 7 July

  Written by Alicia   Updated 14 June 2023

Last year, we noticed that many taxpayers filed their tax returns before the tax season officially began (i.e July). However, doing so caused delays and problems with their tax refunds.

There are only three specific instances where you can file your tax return (ITR12) directly on eFiling before tax season starts:

• If you have been declared insolvent / sequestrated or, 
• If you need to file a tax return for a deceased estate or, 
• If you are em...

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How to refresh your import data on eFiling

  Written by Alicia   Updated 30 May 2023

If your employer, medical aid, retirement annuity, or investment fund has informed you that the tax certificate they provided is outdated and that they have sent a new tax certificate to SARS, but your tax return is still displaying old data, what steps can you take to fix this issue?

We've had a couple of taxpayers over the years contact us with this problem, and fortunately there is actually quite a simple way to fix it. 

Please follow these steps:

1.  Log ...

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Why is my IRP5 not being imported from eFiling?

  Written by Alicia   Updated 15 May 2023

The helpdesk has been inundated with questions asking why TaxTim is unable to import IRP5 details from eFiling and why taxpayers have to manually enter all the data that had usually been  imported in previous tax years.

Here's a few reasons, why you may be experiencing this issue:

• The tax season usually opens 1 July each year -  if you are trying to complete your tax return early (i.e  from 1 March) your data will not be available on eFiling as all instit...

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When can I submit my tax return?

  Written by Nicci   Updated 9 May 2022

When can I submit my tax return for the 2022 tax season? Are the filing dates still the same as those of the previous year?

Overseas income

  Written by Nicci   Updated 9 May 2022

I have been working overseas and will be doing so for the whole of 2022 tax year making me provisional:
a. What average exchange rate will I use?
b. When is the first Provisional tax return due and, if necessary payable?
c. Can I deduct my overseas pension and medical from my gross income or is this only if I have a pension/RA and medical in South Africa?
d. I know that R1. 25 mil is exempt so how would I work out the tax on that as I know that I cannot claim all overseas tax...

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Accepted auto assess forgot my travel logbook

  Written by Nicci   Updated 3 May 2022

What will happen if I already accepted my auto assessment, but I have done so without submitting my travel logbook, am I able to fix this myself, what should I do? Am I correct in saying that I would need to request some sort of correction on eFiling and how would I go about doing this? How and where on the eFiling system should I go to get the request for correction?

Why am I getting auto-assessed? Where is my tax return?

  Written by Nicci   Updated 3 May 2022

I received an auto-assessment from SARS but I am confused what this means. Why have I been selected by SARS and how did SARS get my data? Can I still submit a tax return if I want to?

Retrenchment tax

  Written by Nicci   Updated 25 April 2022

I have been retrenched because of the company cutting back on staff. My severance package is R107000 including R14000 leave pay. I am 57 years old female. I have been paid out R87000, is that correct?
I thought I did not have to pay tax if my lump sum was under R500 000? Please could you assist me with this as I am very much confused?

Living, working and paying tax abroad

  Written by Nicci   Updated 25 April 2022

I have been living and working abroad in Australia for Australian companies since 2017. All the while I have been paying income tax, social security tax etc. in Australia. Naturally, I do not have an IRP5 from the Australian employer. As far as I understand SARS still requires me to declare my income? If so where and how do I declare this on the tax return?

Are Share Options taxed on date of them vesting (eligible but not exercised) or only when exercised?

  Written by Nicci   Updated 21 April 2022

I have the option to participate in an employee share option scheme, but I'm a little unclear on the tax implications. I high-level view is as follows:

Options will be granted at an agreed price (e.g. R1)
The options will vest over a four year period (annually)
Once vested, I would be able to exercise the right to purchase and retain shares or sell to a willing buyer because the company is private, it may not always be easy to find a willing buyer (e.g. At the end of each year), and I may also not have funds available to purchase the shares myself. My main question is around when would I become liable for tax?...

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Changing banking details

  Written by Nicci   Updated 21 April 2022

I would like to find out the following information regarding my banking details. I have recently changed my banking details from Capitec bank to Nedbank. My salary is paid into my Nedbank and debit orders are also connected to this bank. I still use my Capitec bank account and intend to keep it active. I would like to enquire if I need to notify SARS of the change in banking detail and would I also need to go into the SARS branch to make this happen?

Takehome salary?

  Written by Marc   Posted 20 April 2022

If my take home is R34000 What will my salary be before?

What does 'Due to you' mean on my SARS assessment?

  Written by Marc   Posted 20 April 2022

I just don't understand this "due to you" thing it is been 3 working days since I have been to SARS and I have not received anything. I don't know if I owe them or they owe me, even though my assessment says "due to you"

Code 3713 Implications?

  Written by Marc   Posted 20 April 2022

I have been paying PAYE on a site/home allowance which I get because I work on a site away from home. Can I get a tax deduction on this. My employer put it as a code 3713 on my IRP5.

Regards

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