SARS eFiling 2023/2024

Cheens said:
So Sars calculation result says I owe them a huge amount. I was an independent contractor for the period being 11 months and the contracting house said they received a directive for 3616 at 25% tax, none of which i was in control of. Now it seems they're taxing me at 35%. My IRP5 shows the tax code 3616.
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Code 3616 just refers to "amounts paid to independant contractor".

You can check if there are any tax directives on your efiling but it should also be noted on your IRP5 (Page 1. Fixed Rate should be Y followed by the directive #). If it is not on your IRP5 then Employer needs to refile with correct IRP5.

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ld13 said:
So I am clueless, but is that a flat 25%?
If so, and you are taxed as per the table below, it should mean that you will only get a refund if you are under 237100 and from there it starts to erode as the income increases?
1 – 237 100 18% of taxable income
237 101 – 370 50042 678 + 26% of taxable income above 237 100
370 501 – 512 80077 362 + 31% of taxable income above 370 500
512 801 – 673 000121 475 + 36% of taxable income above 512 800
673 001 – 857 900179 147 + 39% of taxable income above 673 000
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So as per the 4th schedule, section 5.2 Independent contractors are taxed at 25% flat rate on code 3616. The bove is based on PAYE which is how i am currently being taxed.
 
lilggg said:
thanks, so then you get this..im guessing it would be financial instruments listed?

View attachment 1744583
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You select the appropriate item from that list. So if its gains or losses from selling stocks / etfs / etc, you select 6506 or 6507. Then you populate the base cost and proceeds fields, and it auto populates the 4250/4251 fields.
 
acidrain said:
Code 3616 just refers to "amounts paid to independant contractor".

You can check if there are any tax directives on your efiling but it should also be noted on your IRP5 (Page 1. Fixed Rate should be Y followed by the directive #). If it is not on your IRP5 then Employer needs to refile with correct IRP5.

View attachment 1744785
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Thanks @acidrain. On my IRP5 Yis selected for fixed rate but there are no details under the Directives. Do you perhaps know where do i check for directives under efiling?
 
Cheens said:
So Sars calculation result says I owe them a huge amount. I was an independent contractor for the period being 11 months and the contracting house said they received a directive for 3616 at 25% tax, none of which i was in control of. Now it seems they're taxing me at 35%. My IRP5 shows the tax code 3616.
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SARS is likely correct, they withhold 25%

BUT that is not your tax rate

If you earned so R1m you just prepaid 25% the balance you pay in.

In short the 25% is just a flat prepayment nothing more, if you earn less than the 25% bracket you get money back if you over you pay in. Nothing sinister, you might just have thought you were only paying 25% which is wrong

The taxing at 35% means you are only paying in the 10% difference as it should be
 
Snyper564 said:
SARS is likely correct, they withhold 25%

BUT that is not your tax rate

If you earned so R1m you just prepaid 25% the balance you pay in.

In short the 25% is just a flat prepayment nothing more, if you earn less than the 25% bracket you get money back if you over you pay in. Nothing sinister, you might just have thought you were only paying 25% which is wrong
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So this is not how the contracting house explained it. I'm waiting for them to confirm the directive details for me.
 
Cheens said:
So this is not how the contracting house explained it. I'm waiting for them to confirm the directive details for me.
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Im sorry you are outta luck

You pay your tax based on the scale the directive just means they withold 25% you do the rest.

This is common practice.

There is no way in the world you will earn more than the range and pay less tax. Get ready to pay 35% you have zero recourse.

Im speaking from experience
 
Snyper564 said:
Im sorry you are kek outta luck

You pay your tax based on the scale the directive just means they withold 25% you do the rest.

This is common practice.

There is no way in the world you will earn more than the range and pay less tax. Get ready to pay 35% you have zero recourse.

Im speaking from experience
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@Cheens you have ZERO recourse with SARS maybe the contracting house but I think there was a misunderstanding and honestly likely nothing you can do about it.

You are only paying our legitimate due the thing is you just thought it was 25%
 
Snyper564 said:
@Cheens you have ZERO recourse with SARS maybe the contracting house but I think there was a misunderstanding and honestly likely nothing you can do about it.

You are only paying our legitimate due the thing is you just thought it was 25%
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FFS, thanks bud. I have record of them saying that its a lucky break from Sars. So i'm actually going to hold them responsible for this as i have nothing stating that the balance of 10% will be due at the end of the fin year. I even sent them my tax calculations based on the hourly rate and they said no it will only be 25% flat.
 
Cheens said:
FFS, thanks bud. I have record of them saying that its a lucky break from Sars. So i'm actually going to hold them responsible for this as i have nothing stating that the balance of 10% will be due at the end of the fin year. I even sent them my tax calculations based on the hourly rate and they said no it will only be 25% flat.
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You need to look at your contract there may be a clause saying you will be responsible for your own tax that would trump the email, might be worth the fight though

My only advice here is the issue lies with them not SARS

The issue may be that you interpret what they withhold as final tax which it is not. Its messy but I don't think you have much ammo

Share the directive and contract for the tax clause here and tag me - pls hide sensitive info
 
Snyper564 said:
You need to look at your contract there may be a clause saying you will be responsible for your own tax that would trump the email, might be worth the fight though

My only advice here is the issue lies with them not SARS

The issue may be that you interpret what they withhold as final tax which it is not. Its messy but I don't think you have much ammo

Share the directive and contract for the tax clause here and tag me - pls hide sensitive info
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Thanks Bud, i have the whatsapp message where i asked this. There was definitely no explanations around a balance that i would be responsible for. I'm still waiting for them to send me the directive. Yes, there is a clause in the contract that states that i am responsible for tax, but when i questioned them about this on a call, they said its a standard clause but they sort out tax. and there's nothing to worry about. This clause is now my worry as the contracting house was also acquired by a UK based company the same month i left and the new execs didn't even know what's an IRP5.

I did find this though:
www.taxtim.com

Am I an Independent Contractor? | TaxTim SA

Answer Tim's simple questions below to find out if you are an Independent Contractor and what this means for you.
www.taxtim.com www.taxtim.com

I fall under bullet point 2.
 
Update on refund reversals

This happened on Friday to mainly Standard Bank customers ( all my colleagues who had reversals were with Standard bank)

Been on the phone to SARS to identify reasons....two calls in excess of 1 hour holding on Friday and Monday

Eventually was told on Monday to just wait and it will be sorted out on the system.

SOA today shows refunds should be paid tomorrow. Hoping that this is the case..
 
I hope someone can give an update on this new Bank Verification being requested by SARS. Do they find their consultants have too little work to give them this additional verification to sort out?
 
Gory51 said:
Update on refund reversals

This happened on Friday to mainly Standard Bank customers ( all my colleagues who had reversals were with Standard bank)

Been on the phone to SARS to identify reasons....two calls in excess of 1 hour holding on Friday and Monday

Eventually was told on Monday to just wait and it will be sorted out on the system.

SOA today shows refunds should be paid tomorrow. Hoping that this is the case..
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Just checked my SOA and the wifes. Sames story. Lets hope it sticks.

Payday on Payday :)
 
Cheens said:
Thanks Bud, i have the whatsapp message where i asked this. There was definitely no explanations around a balance that i would be responsible for. I'm still waiting for them to send me the directive. Yes, there is a clause in the contract that states that i am responsible for tax, but when i questioned them about this on a call, they said its a standard clause but they sort out tax. and there's nothing to worry about. This clause is now my worry as the contracting house was also acquired by a UK based company the same month i left and the new execs didn't even know what's an IRP5.

I did find this though:
www.taxtim.com

Am I an Independent Contractor? | TaxTim SA

Answer Tim's simple questions below to find out if you are an Independent Contractor and what this means for you.
www.taxtim.com www.taxtim.com

I fall under bullet point 2.
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doesnt change my earlier point.

They only prepaid your 25% thats not your rate but your "prepaid withholding rate"

If you were earning in the bracket less than 25% you get money back if you earned millions for example straight to 40%+ and you pay in.

I honestly think you have ZERO recourse with them your contract is the out they need. Be ready to pay in.
 
Snyper564 said:
doesnt change my earlier point.

They only prepaid your 25% thats not your rate but your "prepaid withholding rate"

If you were earning in the bracket less than 25% you get money back if you earned millions for example straight to 40%+ and you pay in.

I honestly think you have ZERO recourse with them your contract is the out they need. Be ready to pay in.
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@Cheens

Using the table below I assume you earned R512k plus. You will pay tax on that rate less the 25%

This may be a shock and you might have misunderstood but this year will not end with you paying 25% you will pay 35/36%

Your best hope to reduce tax is deduct as much trade related expenses as you can thats it

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Snyper564 said:
@Cheens

Using the table below I assume you earned R512k plus. You will pay tax on that rate less the 25%

This may be a shock and you might have misunderstood but this year will not end with you paying 25% you will pay 35/36%

Your best hope to reduce tax is deduct as much trade related expenses as you can thats it

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Thanks, yeah, I hear you. You're probably right but i'm still sticking to my guns with them. They need to sort it out. I would have never agreed to the job if they told me this, as i had another offer with a much bigger company. But anyway, that's in the past now. I will see if I can add expenses to this for WFH, travel, a laptop, and connectivity. I will probably need to get a tax consultant to assist me this time. Thanks for your time and advise @Snyper564
 
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