Provisional Tax

[Dolby]

I use a small company with a few tax consultants to help with my tax, as I know pretty much nothing about tax. The guy that I usually use left and they assigned a new woman to me that screwed up to badly, it'll be the last time I use this company.

However, one thing she said and I'd like to check is regarding provisional payment.

She gave me a figure and said I could either pay lump sum, or top up over the next few months.

Is that right? I can just top up? Is the deadline of the 28 February for PAYE tax only?

 

[SureThing]

Yes top up every month allowed until next assessment to ascertain any shortfalls.

 

[Dolby]

Yes top up every month allowed until next assessment to ascertain any shortfalls.

OK thanks

 

[RedViking]

Sorry I can't answer your question directly. I am not sure about the "top up" or if that is for previous years + penalties. The first tax company I used screwed up badly, I only found out years later they skipped a tax year. That cost me quite a bit. I could arrange with SARS to pay this off overt the next tax year, but it would be on top of my already existing tax of course.

After that I started checking everything. Then I moved to 1 or 2 other companies who also kept screwing up. But I now check everything personally before they submit and they need my permission first before they can go ahead. In fact my last submission I had to email the lady 3 times because she kept making mistakes.

But generally you pay your first provisional tax and then second and final provisional tax for that year of assessment. You should be putting money aside and budget as well during the tax year.

I would find another company. But most of them will screw up so it is important you check everything carefully. Remember you pay for what you get. They usually put the most unqualified employee on these provisionals and returns.

The other option is getting a tax consultant who you pay hourly or monthly rate to properly do your tax.

I've made a post on how I do it here just for interest sake:

SARS - Tax General 2021

Hi Everyone, Hope someone can help me out. So last year I started freelancing after being retrenched because of the pandemic. I have never done tax returns and I also do not have resources for a tax auditor this year. I will use TaxTim, but just have some general questions. 1. If I am...

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