Same amount salary, CTC vs invoiced?

kolaval

kolaval

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Let's assume you earn R30k CTC, would it be more beneficial to invoice your employer for that amount?

Bear in mind you'd have no leave anymore,.

1. Which one wins
2. by which ratio does it win?
3. does the amount matter, due to tax increase?
 
They would have to pay you more to make up for the loss of various types of leave etc to make it remotely worth your while
 
You take on a lot more risk contracting and lose benefits so 25% more should be about the same but it depends a lot on the package you were on.
 
Your employer would end up with all sorts of trouble from SARS as you are not an independent contractor if you work at their premises and they control the hours you work.

There are a whole lot of other things that are considered as well, but those are two of the main things.
 
kolaval said:
Let's assume you earn R30k CTC, would it be more beneficial to invoice your employer for that amount?

Bear in mind you'd have no leave anymore,.

1. Which one wins
2. by which ratio does it win?
3. does the amount matter, due to tax increase?
Click to expand...
Much of the tax act is written to prevent any kind of benefit from this.

If you line up 10 people from a mall and ask them for a tax evasion/avoidance scheme...9 of them will come up with this.

Unsurprisingly SARS is a step ahead of this....and has been for like a decade
 
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