TAX SEASON ( the tips and tricks thread)

[GrootBaas]

I am still not clear about the way per km costs are calculated but what you are saying is this:

cash value * bus km / total km = fixed cost per km
eg:
100 000 * 10 000 / 20 000 = R50 000 - this does not sound right at all.

Surely it is good to know how eFiling calculates this? I'd rather know what is going on in my own affairs than just leave it to the system. Not to mention that it may be beneficial to put in actual expenditure rather than km traveled but I would have to know how it works to know which.

No not like that. There is a table that is published annually from which you get the amounts to use. I am trying to find it for you but the SARS website is too unfriendly.

Here is a very handy guide from Mazars for the 2012 tax year. Use the table as on page 4 of that pdf.

Using your figures as above, the calc would be like this :

Cost of vehicle is R100,000 so the fixed cost would be -

38,726 (as per table) / 20,000km = R1.9363 per km

Now add the fuel and maintenance components (R0.68 and R0.292 as per table) gives a total deduction of R2.9083 per kilometer

10,000km (business km actually travelled) * R2,9083 = R29,083 would be the total deduction allowed (limited to the amount of the travel allowance actually received)

This is a very simple example with one vehicle used for the full year using the 2012 tax year amounts.

[AirWolf]

On page 1, you tick the box "Did you incur any other income..." then a sub box pops up "did you dispose of any local assets etc attracting CGT"

Thanks.

I have a loss from one disposal though.

[GPSJane]

No not like that. There is a table that is published annually from which you get the amounts to use. I am trying to find it for you but the SARS website is too unfriendly.

Here is a very handy guide from Mazars for the 2012 tax year. Use the table as on page 4 of that pdf.

Using your figures as above, the calc would be like this :

Cost of vehicle is R100,000 so the fixed cost would be -

38,726 (as per table) / 20,000km = R1.9363 per km

Now add the fuel and maintenance components (R0.68 and R0.292 as per table) gives a total deduction of R2.9083 per kilometer

10,000km (business km actually travelled) * R2,9083 = R29,083 would be the total deduction allowed (limited to the amount of the travel allowance actually received)

This is a very simple example with one vehicle used for the full year using the 2012 tax year amounts.

Oooh! Thanks very much! Yes I found that table before. No idea where though. But ok, I get it

[Celine]

another very handy site which is simple and user friendly. these people publish handbooks which the SARS assessors and auditors use each year.

http://www.pkf.co.za/

[GrootBaas]

another very handy site which is simple and user friendly. these people publish handbooks which the SARS assessors and auditors use each year.

http://www.pkf.co.za/

+1

I have all the tax booklets from pkf on my computer. Very handy.

[krono9]

another very handy site which is simple and user friendly. these people publish handbooks which the SARS assessors and auditors use each year.

http://www.pkf.co.za/

At our audit firm we use a combination of the above together with pastels tax guide also very good:

http://www.pastel.co.za/Downloads/Ta...xGuide2011.pdf

Then for all payroll related tax issues the VIPPayroll guide is the best:

http://www.vippayroll.co.za/pdf/2011_payrollguide.pdf

[Nicklemeister]

Good day everybody,

I have a twofold tax-related question:

I am looking to open a small salon. Would such a business qualify for paying Turnover Tax given that it will have a turnover of less than a million rand. From what i understand 'personal service providers' are disqualified from paying turnover tax. Would that apply to my business?

Secondly, if some of my employees were to receive a take home salary of R4500 per month (or R 54000 per year), am I liable for paying any kind of employee tax (SITE or PAYE) ? Or, being below the threshold, are their salaries completely exempt from any income tax? If so, do these employees still need to be registered with SARS ?

Thank You

[Taxhelp]

Good day everybody,

I have a twofold tax-related question:

I am looking to open a small salon. Would such a business qualify for paying Turnover Tax given that it will have a turnover of less than a million rand. From what i understand 'personal service providers' are disqualified from paying turnover tax. Would that apply to my business?

Secondly, if some of my employees were to receive a take home salary of R4500 per month (or R 54000 per year), am I liable for paying any kind of employee tax (SITE or PAYE) ? Or, being below the threshold, are their salaries completely exempt from any income tax? If so, do these employees still need to be registered with SARS ?

Thank You

Hi Nicklemeister,

You should do your homework properly before registering for turnover tax.
Remember, turnover tax is based on your TURNOVER rather than taxable income. Therefore, in the start-up years where lots of companies still make losses, you will still be liable for tax even if you make losses! Whereas if you don't register for turnover tax, you will not be liable for tax as long as you make losses, and those losses can be carried over to the next year of assessment.

"A personal service company or trust is any company or trust where services are rendered personally by any connected person in relation to such company or trust and —
the person rendering the service would be regarded as an officer or employee of the client, had such service been performed directly to the client;
the person rendering the service is subject to the control and supervision of the client as to the manner in which the duties are performed in rendering such service and must be mainly performed at the premises of the client; or
more than 80% of the income of the company is derived during the tax year from one client.

The employee will be deemed to be a personal service company or personal service trust if any of the above scenarios apply."
If you employ 3 or more FULL time employees during the year, you will not be regarded as a personal service company. And I doubt if the above will also apply to you.

2nd question : All employers are now obliged to register all their employees at SARS. Therefore they will still need to be registered with SARS regardless of their income. The will only pay SITE (first R59 750 for 2012 tax year) of R10 755 for the year, but due to the primary rebate they receive, they will in essence be exempt from tax.

[GrootBaas]

Hi Nicklemeister,
2nd question : All employers are now obliged to register all their employees at SARS. Therefore they will still need to be registered with SARS regardless of their income. The will only pay SITE (first R59 750 for 2012 tax year) of R10 755 for the year, but due to the primary rebate they receive, they will in essence be exempt from tax.

The SITE system has been repealed with effect from 1 March 2011.

Edit: And I think you didn't grasp the SITE concept either, but there is no point in explaining it anymore.

[Tigerman]

Yesterday I returned to the SARS branch office to correct and correct my personal tax assessment (3 weeks ago all income and deductible fields were not completed and the SARS consultant said I should return. Another 2-3 hours in the queue!

I did this because SARS says one must be honest completing the form, even though my overall assessment won't change. Now the SARS consultant tells me because of the update my assessment will be subjected to audit and I must AGAIN provide copies of supporting doc's, which i ALREADY handed in. Even he was nonplussed by this additional admin work SARS creates for itself and the taxpayer; 'that's the way they work', he said. In fact, because he knew the extra hassle that will come, he asked if i really wanted to update my tax info.

From dealing with SARS for my firm I know they change rules without informing taxpayers. They're may be better than other government departments but like any bureaucracy, they muddle along.

[GrootBaas]

Yesterday I returned to the SARS branch office to correct and correct my personal tax assessment (3 weeks ago all income and deductible fields were not completed and the SARS consultant said I should return. Another 2-3 hours in the queue!

I did this because SARS says one must be honest completing the form, even though my overall assessment won't change. Now the SARS consultant tells me because of the update my assessment will be subjected to audit and I must AGAIN provide copies of supporting doc's, which i ALREADY handed in. Even he was nonplussed by this additional admin work SARS creates for itself and the taxpayer; 'that's the way they work', he said. In fact, because he knew the extra hassle that will come, he asked if i really wanted to update my tax info.

From dealing with SARS for my firm I know they change rules without informing taxpayers. They're may be better than other government departments but like any bureaucracy, they muddle along.

Yeah it's bad. I've been meaning to move away from ABSA for a while now but the thought of having to go to SARS to update my banking details is such a mission.

[tweety2007]

I was unemployed during the period May 2011 to June 2011.
During the 2 month period, I received no income.

Do I need to declare to SARS that I was unemployed for this period?
If so, how do I go about doing this?

[AirWolf]

I was unemployed during the period May 2011 to June 2011.
During the 2 month period, I received no income.

Do I need to declare to SARS that I was unemployed for this period?
If so, how do I go about doing this?

No, the companies you worked for before and after will have the relevant details on the IRP5s to be given to you and SARS.

[mcarte]

Hi there
am looking for some advice re travel claims - we're setting up our business and would rather pay travel claims per km. Firstly, I have no idea what rate is used to calculate the cost? Secondly, I understand we must keep log books, but is there any annual limit on how much mileage you can claim at a per km rate (as opposed to a travel allowance)?
thanks in advance!

[sfhooray]

Hi guys

I am looking for a good tax accountant. I am really unhappy with the guy who does mine currently and want to change. I dont have a very complicated return but i am a provisonal taxpayer so someone who can do that as well and does not charge an arm and a leg. Somebody in the Jhb North area would be perferable.

Thanks
SF