May a sole proprietor have travel allowance and must retirement or providend fund be deducted monthl

Posted 21 April 2016

I would like to know if a sole proprietor may allocate a travel allowance to himself?

In regards to a retirement or provident fund may I do payment once a year up to 27. 5% of my earnings or must I do it monthly?

Your help will be greatly appreciated

WS

Full time salaried employee or Independent Contractor?

Posted 21 April 2016

I work part time ad hoc shifts as a doctor at a private hospital, where I am paid an hourly rate and my hours of work are between 0 and 30 a week. In terms of tax deductions (specifically MPS - medical malpractice insurance, travel expenses, training course fees); would my work be classified "full time salaried work"?

I understand this is important in terms of which items one can claim back.

provisional tax on a Pty and small company

Posted 21 April 2016

I have just opened a PTY. I do not know what my turnover will be. It might be between R 500 - R 400 000 per annum. 1) Do I need to register for provisional tax and when?
2) How do I calculate provisional tax
3) would I fall under SBC or company for tax purposes?
4) what is directors tax and do I need to pay it?

the company is very simple... I have one supplier. I have no extra expenses. I have no assets. I have no employees and I am the only director. Thank you

How to calculate the Doubtful Debts allowance

Posted 15 April 2016

If provision for doubtful debts balance in 2015 was R120,000 (2014: R60,000) relating to a specific debtor. In 2014 income tax return the taxpayer claimed a doubtful debt allowance of R15,000. What is the income tax adjustment in 2015?

Maximum Tax deduction for retirement fund under new tax dispensation

Posted 14 April 2016

I am a government employee contributing towards the GEPF. I and the employer make contributions based on my pensionable salary which is 70% of my total cost to company. I contribute 7. 5% and my employer contributes 13% of my pensionable salary. Under the new streamlined retirement savings dispensation, I want to know the per annum value of my remaining tax deductable allowance, should I choose to contribute towards a RA in addition to my current GEPF contributions.

Travel claim against commission income /vehicle claims

Posted 6 April 2016

Can you claim depreciation as well as finance charges on a travel claim against commission income?

Employee tax - earning R 6773.76 per month

Posted 5 April 2016

I have recently employed 8 people, who each earn R5376 basic salary R 1397. 76 overtime allowance per month. When I enter these figures on the payroll system that I'm using, tax is calculated at R 94. 28.... I'm confused - Is this correct? I thought only people earning above R120 000 pa pay tax?

SARS mistake or are refunds done per assessment

Posted 5 April 2016

I was audited and asked to submit supporting docs for logbooks, vehicle ownership/invoices and medical expenses. My assessment was calculated at R49k refund initially. When submitting medical exp I realized I had entered some expenses incorrectly so made changes to the ITR12. This resulted in a refund of R58k. In the new assessment SARS deducted the R49k under source code 4102 in the line "Previous Assessment Results", with net refund of R9k. Will my refund be both assessments ie R59k or are the...

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Net pay determination

Posted 4 April 2016

If I have a R3000 petrol allowance added to my salary, will the provident fund contribution be deducted as well, e. G. If on 10% contribution, then the net income before tax will be R2700?

Section 10(1)o - Any 12 month period

Posted 4 April 2016

I started a job out of SA on 1 August 2014 and traveled regularly from SA to my place of work out of SA on rotation up until the end of the job on 29 February 2016. For the 12 month period 1 Aug 2014 - 31 July 2015 I exceeded the 183 and 60 day requirements. I therefore claimed my tax exemption on my 2015 tax return (for the income earned during Aug 2014 - Feb 2015). For the period 1 August 2015 to 29 February 2016 I exceeded the 60 day requirement but not the 183 days. However, if I calculate 1...

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Section 10(1)o - successive tax years and overlapping 12 month periods

Posted 4 April 2016

Hi Tim,

When working successive years out of SA on a rotation basis (regular travel to and from SA) am I able to overlap my 12 month periods I use when calculating the days worked out of SA?

Section 10(1)o makes mention of the 183 and 60 day periods being part of any 12 month period which may start or end in the financial year in question. There is no mention of not using periods 'twice' ie If I do a 60 day period out of SA in June and July 2015 I could use this sti...

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Do I need to keep a logbook?

Posted 31 March 2016

My monthly salary is split up into salary and travel allowance. Therefore my PAYE is calculated accordingly. The company pays for all my petrol, whether business or private. Do I still keep a logbook and can I still submit a claim?

Why aren't I getting tax rebates on all my work expenses?

Posted 31 March 2016

I contract for a UK based company and and paid in Rands each month - a salary, and all my expenses. Currently I pay a tax person in SA to do my tax (I am paid in full and then it's my responsibility to sort my tax out), however I haven't received any rebates from SARS for 3 years despite all my expenses, including travel, office rental, parking (all business related). Wondering if you can help? Would TaxTim be able to deal with my provisional tax?

Business mileage when working from home

Posted 31 March 2016

I am employed as a service engineer, receive a travel allowance and own my own vehicle. Our company is embarking on a work from home initiative where we will no longer have to come to the company offices every day before going out to see clients and repair equipment. In this new scenario where my administrative work would take place at home and I drive directly to my first client, then to the next etc before eturning home, what would be counted as business mileage and what as private?

Wear and Tear claim for home office equipment for sole proprietor

Posted 31 March 2016

Can a sole proprietor claim wear and tear on home office furniture, equipment, computers? What is the allowance?

Do I qualify for Turnover Tax?

Posted 30 March 2016

I work as a sole proprietor in the travel industry where I earn commission. I work from home and have to look for my own business but I work through a travel agent who collects the money on my behalf and they pay over my commission monthly. Can I register for Turnover Tax? My income is below R1m per year but I am worried that I may be classified as a personal service provider as more than 80% of my income comes from one source namely the travel agent and not the individual clients.

If I am a provisional tax payer, do I still pay PAYE?

Posted 24 March 2016

If I am a provisional tax payer, do I still pay PAYE?

Independent consultant and expense claims

Posted 22 March 2016

I am an independent contractor and would like to find out how to calculate my salary due to me taking expense claims into account. Total salary = hours worked x Hourly rate
Expense claims = cell phone, internet and travel claims

To calculate tax amount you take your total salary less expense claims. Then when calculating amount payable, do you

A: (Total salary amount less expense claims) less taxable amount plus expense claims = amount due to you

OR
...

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SARS, bitcoin wallets and disbursement of BTC funds

Posted 21 March 2016

However, there are a number of issues that I cannot get to grips with regarding the storage of BTC in a wallet and the further use of BTC outside the fiat system:

1) If I moved my BTC to a wallet provider outside of SA (blockchain, based in Luxembourg but servicing globally) does SARS see this as an offshore transaction? as:
a) The wallet provider is not a registered global institution as such. b) No interest is accumulated to this wallet / amount, so no income is generated.
...

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PAYE or Provisional Tax

Posted 18 March 2016

I own a small business - registered with CIPC as a private company. I am the sole director of this company and currently get paid a salary by the company. Should I be registered for PAYE, UIF and WCA for the income in the form of the salary or are provisional tax payments sufficient.

Business mileage for off site visits

Posted 17 March 2016

Can I claim business mileage from home to another site (belonging to the company) which is not my normal place of work?

What are business related expenses if you are a bookkeeper working from home?

Posted 17 March 2016

What are business related expenses if you are a bookkeeper working for several clients from home?

Travel allowance exceeding 8000km

Posted 14 March 2016

How is the travel allowance taxed if you do not receive a car allowance, use personal vehicle and exceed 8000km for business travel? Company pays the standard rate per km, and no other allowance is received in respect of travel.

Which year do I declare CGT on property sale?

Posted 11 March 2016

If the date of sale and the registration of that same property fall under two different tax years, which is the year applicable for submission of the tax return to SARS?

New tax law on pension funds

Posted 11 March 2016

How will I be taxed according to the new pension fund law? Salary R27,000 House subsidy R700 travel allowance R10,735 Alexander Forbes Provident Fund R2,077 Company contributes R5,004
New tax law 27. 5% pension rebate -Interpretation there of My contribution R2077 only or 2077 5004=R7081
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