CC Questions

K

kiepie

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So currently my business isn't registered and all the monthly income gets deposited into my bank account.

When registering a CC, will I still be able to have the business deposit funds into my back account? (banking cost is cheaper)
 
kiepie said:
So currently my business isn't registered and all the monthly income gets deposited into my bank account.

When registering a CC, will I still be able to have the business deposit funds into my back account? (banking cost is cheaper)
Click to expand...

If you going the CC route, then get it a bank account of it's own. It sounds like you have been a sole trader all this time, why you changing?
 
Hi kieppe. was about to reply to your pm when i saw this thread...I would also like to know this though.
 
sox63 said:
If you going the CC route, then get it a bank account of it's own. It sounds like you have been a sole trader all this time, why you changing?
Click to expand...

Yes a sole trader. It works out cheaper with tax.

With Personal Income tax if I have an net income of R122 000 I pay 18% tax.

R 122 000 X 18% = R21 960
min my tax rebate -R 8 280
= R13 680

With registering a CC as a Small Business the tax is

R0 - R40 000 = 0%
R40 001 - R300 000 = 10%
R300 001 - unlimited = 29% (even though company tax is 28%)

So I will be paying R 8 200 on my Net Income of R 122 000.

(R 122 000 - R 40 000 = R 82 000
R 82 000 X 10% = R 8 200)
 
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