RAF conversion - might flag risk and SARS might want tax on it as they might think it is paid out
Posted 12 October 2015
I claimed RAF deductions of about R9000 last year but this year it is only R850 because I took an authorised premium payment holiday allowed by Sanlam. I also converted my RAF's to a new generation RAF platform, so they are were never paid out but I am very worried that SARS will think that the RAF's were paid out and want to tax them - what should I do?
Car Allowance Capped / eFiling adjustment considered.
Posted 9 October 2015
Dear TaxTim. I only recently realised that SARS have been capping my yearly travel allowance (code 3701) at R66,000 which is my monthly car allowance x 12. Thanks for your feedback on that. I do however qualify for an allowance of R100,000 per year based on value of the car and log book total vs. Business km's. When doing my onlie eFiling, the system did allow me to reduce 3601 Income and increase 3701 by the same amount that I decreased the income 3601. I am hoping that this will then prevent m...
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What are those supporting documents that I need to submit
Posted 8 October 2015
I have received an email from SARS saying my income tax has been identified for verification and I must submit my supporting documents on my SARS eFiling. What are those supporting documents that I need to submit, if I don't have invoices,medical certificate or travel book. Is it the IRP5 still a supporting document?
Did the employer calculated my PAYE correctly?
Posted 8 October 2015
Please assist with these calculations:
I earn 31650 pm = 379800 pa (no other benefits). On resignation an amount of R14240. 31 was due to me for leave days. A further bonus amount of R28 485 was to be paid plus R 1360 for travel claim. My payslip reflects a PAYE amount of R20691. 76. Is this correct? I think the employer got it wrong.
Business travel expenses for individuals vs. businesses
Posted 7 October 2015
Hi Tim, I'm considering taking a contract position. I live in Durban and the position is in Johannesburg. Which means I will be commuting weekly to Johannesburg and spending the weekend in Durban with my partner. Including the travel expenses and extra accommodation in my hourly rate drastically increases the tax that I will have to contribute, which means the opportunity is not that lucrative. I end up losing. Would it make more sense for the business to cover the cost of my weekly flights and ...
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Calculation of PAYE
Posted 7 October 2015
Calculation of PAYE. Earnings include allowances(standby, acting, travel and cellphone). UIF, medical aid and pension fund are deducted.
What are the requirements to claim vehicle depreciation?
Posted 6 October 2015
What are the income requirements to claim vehicle depreciation?
If commission forms about 25% of my yearly income, and my vehicle is used extensively to travel between clients (core part of the job), can I claim depreciation of my vehicle against my income?
I don't receive any travel allowance or fuel etc. I keep a logbook and can prove travel % to work/personal. Thanks.
Travel expenses self-employed
Posted 6 October 2015
If I am self-employed - how do I claim for travel expense when completing my Tax tax return?
Difference in tax treatment if employee went on Business visa
Posted 6 October 2015
Dear sir,
If an employee goes to South Africa on business visa and receiving allowance there only, tehn what will be the tax implication on that income in South Africa
Car Allowance Cap Limit
Posted 6 October 2015
To whom this may concern. I have a question regarding car allowance. If the allowed car allowance based on value of the car, total mileage and business mileage comes to R100,000 but the car allowance claimed for the entire year is only R66,000, does that mean SARS will only authorise (CAP) car allowance of R66,000 or R100,000
How much tax is required if you earn R17500 per month
Posted 5 October 2015
What is tax figure if you earn R17500 monthly and you contributing R810 provident fund
Subsistence Allowance
Posted 5 October 2015
We give our employees a subsistence allowance of R 120 per night spent away (Meals and incidental) from home. From my knowledge, I know that this this allowance is not taxable thus no employees tax may be deducted from the subsistence allowance regardless of whether the deemed amounts have exceeded or not. Is this correct?
Retirement Benefit of R500,000 Tax free
Posted 5 October 2015
How do I take advantage of the R500,000 tax free portion AT RETIREMENT? I was retrenched at age 54 and paid full tax on my retrenchment lump sum. Now that I am 56 and would like to retire on the funds in my pension preservation fund, I do not understand why the tax directive on the first R500,000 from my preservation fund was taxed. I have NEVER retired before so I should have the full R500,000 tax free ON RETIREMENT?? Numerous calls to the SARS call centre have me confused between benefits at ...
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Pension fund reflects payout but it was moved to a preservation fund.
Posted 5 October 2015
When I left my previous job I moved my pension fund to a preservation fund. I did not do my 2014 taxes and now when I go on SARS eFiling my IRP5 seems to reflect that I was paid out the money from my pension fund. I'm not sure what I'm supposed to do now. Would signing up for your service show me the steps I need to deal with this on my 2014 tax return?
Do I have to pay tax if I earn R6000 basic commission?
Posted 30 September 2015
Hi, I would like to know how do I get taxed if I get paid a basic salary and commission? My basic is R6000 and get commission of 10% on each services after I have made over R10 000. Please help!
How do I submit 2007 return without documents?
Posted 30 September 2015
SARS is requesting that my husband submit a 2007 tax return. However, he was only working certain times during that tax period (as a freelance contractor) and has no IRP5. He contacted the company he worked for as well, and they have no record of a IRP5 as well. What do you advise him to do now if he has no documents for that tax period? He may be able to get a record of his retirement annuity contributions, but that is all.
Can I claim travel expenses without having a travel allowance?
Posted 30 September 2015
Can I submit a travel log book with my tax return if I do not have a travel allowance and if my commission is less than 50% of my monthly income?
Client expenses for food as commission earner
Posted 30 September 2015
As a commission earner, am I allowed to claim back on client expenses specifically food and coffee. I have kept all receipts where I have taken a client for coffee or lunch. How will SARS judge these?
Car Deductions on Commission
Posted 29 September 2015
Hi Tim, I am a Commission earner and I claim back on my vehicle usage on depreciation and logbook. When I claim back on my car usage, I keep a logbook as well. But my question is, can I claim back on a paid up vehicle? or do I have to still be paying monthly towards finance. Does the finance amount help with increase my tax return from SARS. Eg if im paying R2500 or R2000. Which will yield a higher tax return?
Depreciation for Commission Earner
Posted 29 September 2015
Hi TaxTim, I have a lot of questions lined up. I hope its ok. The first one. I am a commission earner and claim back usage of my vehicle for business use. 75%
when calculation deprection over the 5 year straight line method. When does this begin? when I took ownership of the vehicle? or when the vehicle was registered?
2. I bought a vehicle in 2011 and only starting working on commission in 2013. When does my depreciation stop on this vehicle? 2016? or 2018?
VAT on new vehicle for commission earner
Posted 29 September 2015
As a Commission earner and using my vehicle for business purposes. Can I claim the VAT back on purchasing a new vehicle?
also what can I claim on the interest portion?
Calculation regarding lump sun withdrawal benefit?
Posted 28 September 2015
How does the calculation work regarding lump sum withdrawal benefit (3920) from Sanlam Life Insurance Ltd and is the any deduction on that amount?
Can a sales representative claim on car installments?
Posted 28 September 2015
I just started a new position as a sales representative, and the car I am currently using is quiet old. As I will be travelling a lot to see clients I would like to buy a new reliable car. Would I be able to make a claim on the monthly installments for this new car, as it will be used mainly for work? If so, what percentage can I claim?
How do I dispute an Additional Assessment issued by SARS that is not correct?
Posted 27 September 2015
Hi Tax Tim
I am very pleased with the work that you are doing here. Keep up the great work!!!
I submitted my tax return to SARS about a month ago and they selected me for verification/an audit because I had a refund payable to me. I submitted all the documentation they required (logbook, receipts etc), but they have recently responded with an addditional assessment stating that I owe them money - which cant be the case, as I am a 100% commission earner (with no basic salary) and I dont have a tax directive...
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Request for Supporting Documents but I have not been employed for 3 years
Posted 27 September 2015
SARS is asking for supporting documents related to my tax return but I have been unemployed and living abroad for three years! I don't have any of the documents they are requesting. I still pay provisional tax and submit that tax return dutifully. I read that I must swear an affidavit at a police station but I am currently not in the country and won't be back for several months - they need these supporting documents in 21 days. What must I do? (I did email them, asking them what to do, but they ...
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