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Derrick said: 11 April 2025 at 12:23 I am already paying income tax on my salary, I now want to do consulting work, what is the best way to handle tax in this regard? |
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TaxTim Alicia said: 11 April 2025 at 12:39 If you do consulting work in addition to your regular salary, the extra income will be added to your total income and taxed at your marginal tax rate. You have two potential scenarios depending on how you are engaged: If you are considered an employee of the consulting company, they should deduct PAYE (Pay As You Earn) tax from your income and provide you with an IRP5 tax certificate. If you are working as an independent contractor/ freelancer, you will need to register as a provisional taxpayer. In this case, you are responsible for paying tax on your consulting income during the year through provisional tax returns. To handle the tax efficiently, you should: 1. Keep accurate records of your consulting income 2. Add this income to your total annual earnings on your ITR12 and IRP6 tax returns. 3. Use a tax calculator to determine your total tax liability. You can make use of our SARS income tax calculator to calculate any tax due to SARS. 4. Consider registering as a provisional taxpayer if you are self-employed/Independent Contractor/Freelancer We recommend reading our blogs for more information: https://www.taxtim.com/za/blog/top-tips-for-sole-props Provisional Tax Guide |
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