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Independant Contractor - deductions



New@this says:
25 April 2016 at 14:48

Can I, as an independant contractor, pay my unemployed spouse a minimum wage salary and deduct this from my monthly taxable income? I do have a payrol service provider and get issued a payslip with my income, travel allowence, UIF, medical aid and Tax after the deductions from them on a monthly basis.

TaxTim TaxTim says:
26 April 2016 at 11:01

Is your income coded to 3616 on your payslip?
Does your spouse work for you?

New@this says:
26 April 2016 at 11:29

Hi,
Yes, It is 3616 on my IRP5, but I cannot see the code on my payslip.
No, she doesn't do any work for me that is related directly to my income.

Does this mean I can only claim a percentage related to my home office 2m for cleaning services?

TaxTim TaxTim says:
28 April 2016 at 11:51

If your spouse does not perform work that is related to your business, then you cannot pay her a salary and deduct it from your income. You can only deduct business expenses incurred in the course of generating your income.

Please check whether you can claim home office expenses
You would be able to deduct any other business related expenses e.g. telephone, laptop wear and tear, travel etc Be sure to work out the split between personal and business expenditure and claim the % relating to business only.

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