My TAX setup...

[mkv]

Hi all,

Need some advice regarding my TAX setup.

For the past 3 years I have been registered as a provisional tax payer, filling out IRP6's. I have a Sole Prop. which is registered for VAT aswell. I submitted my last IRP6 in July, long before the August 31st cutoff date.

On the 7th of September this year I started permanent employment for a company, hence I receive a payslip and an IRP5 from them. I still run the Sole Prop. on the side though.

What's the correct setup for me?
Do I carry on being a provisional taxpayer?
If so, do I put both sets of income on the IRP6, summed up?
Or how does it all work now?
How does this affect my ITR12?

Thanks for all your response!

 

[atomcrusher]

A very loose definition of a provisional tax payer is a person who receives income other than salary from formal employment.

That income could be interest from a money-market investment account; rental income from any properties you may own; selling your body, or in your case additional income earned via the Sole Proprietary enterprise you run on the sly .. (sorry ... side

I reckon you should be registered as Prov Taxpayer ... if you want to find out just call your SARS office (preferably from an untraceable pay phone ) ... they are, after all, the ONLY Governmental dept. that has even the faintest clue what they should be doing.

 

[mkv]

lol, I'm not doing anything illegal And my company is fine with me having a sole prop as long as it doesn't affect my work for them.

I've declared all my income, etc. up until now.

I just want to know how I'm meant to submit it all going forward?

I've phoned SARS twice and I can't really get a straight answer from them..

 

[Other Pineapple Smurf]

My Dad use to be a farmer (30yrs back) but still remains a provisional tax payer every since. Trying to get de-registered is like trying to convince SABC you no longer have a TV - its possible but damn is it worth all the effort???

Perhaps you should rather speak to an accounting firm.

 

[mkv]

All sorted!

Managed to get hold of a family member who's a CA.

I remain a provisional tax payer. I add my net income from the Sole Prop to my taxable income from my payslip. I minus my already paid tax on my IRP6 which I have on my payslip. Bob's your fathers brother.

 

[Waansin]

I earned extra money the 2008 tax year and e-filing made it quite easy to declare. The IT12 gets an extra section for you to declare extra earnings. I didn't pay any provisional tax so I had to pay in to SARS.

They automatically made me a provisional tax payer for 2009, but I ignored that since I hadn't earned anything extra this last tax year. When it came time to fill out the IT12 I just removed the extra earnings section and filled it out as usual. No issues yet.

You cannot add anything to your IRP5 sections that is not related to that employer. In fact you get a separate IRP5 section for every IRP5 they know about.

 

[undesign]

Hi all,

Need some advice regarding my TAX setup.

For the past 3 years I have been registered as a provisional tax payer, filling out IRP6's. I have a Sole Prop. which is registered for VAT aswell. I submitted my last IRP6 in July, long before the August 31st cutoff date.

On the 7th of September this year I started permanent employment for a company, hence I receive a payslip and an IRP5 from them. I still run the Sole Prop. on the side though.

What's the correct setup for me?
Do I carry on being a provisional taxpayer?
If so, do I put both sets of income on the IRP6, summed up?
Or how does it all work now?
How does this affect my ITR12?

Thanks for all your response!

You are still a provisional tax payer (can't remember the exact requirement, but it is minimal and you will still qualify). Same as before, just add your salary and deduct PAYE paid on your IRP6.

Nothing changes really, other than your business income maybe being taxed in a higher bracket.

edit/ sorry, only saw the last posts now

 

[undesign]