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.

Tax paying Freelance Artist / Independent Contractor

Posted 20 April 2016

I am a freelance artist, I want to work fulltime for myself, but can't be certain how much I will make or whether I would make any money at all. I am married in community of property. My husband is lucky enough to have an employer that takes care of his submission every year. I need to ask whether I should add my income to his submission or whether I should have my own tax number. I tried to enlighten myself by reading the Tax website,, but it's all greek to me, I can't seem to figure it out. I ...

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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?

Tax when working for different employers / independent contractor

Posted 6 April 2016

I am about to start 2 different half day jobs. In the morning I work for an organisation and in the afternoon I work for an individual. Should I expect the individual I work for to deduct PAYE or should I put it the PAYE amount away and pay it as personal income tax?

How do i answer the marital status question on SARS eFiling?

Posted 5 April 2016

I got married in Dec 2015, but haven't managed to get a gap to go to Home Affairs to apply for a new ID book/card. This company where I freelance at don't even know that I got married. I tried to tell human resources,
late last year, but the woman said I can just provide them with copy of my new identity document, when I eventually get one. So now, WHAT do you suggest I DO when I log onto SARS e-filing,
Must I click the unmarried box? Or the married box?

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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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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Please clarify if I can get a tax directive and how they work

Posted 4 April 2016

My estimated gross income R670 114. 00
My estimated expenditure R306 081. 00
Estimated taxable income R364 033. 00
Please show me the calculations to get a tax directive of 20%

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?

Tax Directive CCMA settlement

Posted 31 March 2016

Hi there, I recently won a case of unfair dismissal and the commissioner stated I would be taxed at my regular income rate. I have been taxed at 41%! Is this normal?
Second question - I need someone to do my tax. And it's in a mess. Do you do this?

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?

How best to "structure" freelance income?

Posted 30 March 2016

I work full time, earning a salary and paying PAYE tax. Through the year I have some projects that enable me to generate some extra income. However, if I just do this as an individual, I incur additional income tax at my marginal rate. Is there a way to structure "freelance" work and projects (in something like a company?) so that I can pay less income tax whilst still abiding the law?

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.

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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Taxation on foreign sourced pension

Posted 21 March 2016

My wife and I are Irish and UK citizens respectively, currently living in the UK and are interested in the feasibility of retiring to South Africa. Our method of retirement would be either on a temporary retirement visa or as a person of independent financial means. I only mention this in case it impacts on my question. My particular interest is understanding how my UK pension income would be taxed in SA. My pension would be derived from a number of sources
1. UK State pension
2. Company pension. All pension is derived from activities not associated with South Africa...

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Should there be a PAYE deduction from my sole proprietor invoice?

Posted 21 March 2016

I operate a sole proprietor providing services to various companies on an "in need" basis on short and medium tem basis. I operate at my client place of business however the latest client has started deducting PAYE from my invoice at a rate of 33. 3% although I am not on a fixed contract and will not derive more than 80% of my annual income from them. Are they entitled to do this and how do I reconcile these deductions as a provisional tax payer?

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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What to do if SARS penalises me?

Posted 17 March 2016

I was working freelance for 2 companies. My salary was plus minus R15,000 a year. SARS penalised me because I don't fill in forms. They say I owe R10,500. I don't have that money - what can I do?

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?

Employing a relative

Posted 14 March 2016

I pay provisional tax and have 2 contractors to whom I pay FEES (commission) on sales leads that they generate for me. My question is: I wish to use the services of my daughter-in-law (same surname as mine) in a similar capacity so will SARS see this as shifting my tax burden to avoid a higher bracket or will I be allowed to book this family member as a legitimate earner in her own right?
I would maintain a payments register and her fees would be paid over periodically to her banking accou...

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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.

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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