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Marisa says: 4 February 2016 at 8:06 I left a permanent job and started a freelance design business in July 2015. My Personal income tax for last year is up to date. I need to start paying tax on my business but have no idea how this works. I am using my personal bank account to receive payments from clients for design services. I am not yet breaking even and can barely pay my bills. I am not making a profit yet. I have no idea how tax works. I need help and wondered if signing up to TaxTim would be the way to go? I would need to be advised on business tax and how personal income tax works now that I am self employed? My business is not registered yet. How would I produce an IRP5 for my income if I don't have an employer? Please help. |
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TaxTim says: 4 February 2016 at 15:56 If you are operating as a sole trader (i.e. in your personal capacity and not via a company) then you don't need to register your business. You would need to declare the business's income and expenses in your own tax return within the section "Local business, trade and professional income". You would not not need to produce an IRP5. Since you are self-employed and running your own business, you would need to register for provisional tax and file a provisional tax return twice a year. Even if your net profit is nil, you should file a nil tax return. What is Provisional Tax? How and when? Remember to keep a record plus supporting invoices for all your business related expenses as these can be claimed against your income to reduce your tax payable. Register for TaxTim and we will assist you to complete your provisional tax returns as well as your tax return by asking you questions which will guide you to complete the tax returns accurately and completely. |
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Marisa says: 4 February 2016 at 16:08 Thank you so much. What a relief. I will be joining tomorrow and get my tax sorted out through TaxTim. Thank you for the thorough response, awesome customer service! Very impressed. |
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TaxTim says: 4 February 2016 at 19:53 Thanks for the great feedback - glad we could assist and look forward to helping you further! |
