Section 12J and Your Tax Plan

Now more than ever, as we navigate through these uncertain times, tax-payers will be looking to tax incentives as a tool to reduce their tax burden. Given that Retirement Annuity contributions are now capped at R350 000, a well-structured investment into a Section 12J fund presents an attractive alternative. As this allowance is capped at R2 500…

When to switch from running your business as a sole proprietor to a private company

By Ruan van Jaarsveld –  Manager, Hobbs Sinclair Advisory Many South Africans have recently found themselves feeling the need to venture into business outside of the formal, corporate framework. Reasons for this vary from being retrenched from a position of employment to having to supplement employment income with another income stream.   Most new business…

Beware the scammer

SARS has issued a warning of various email and SMS scams that are doing the rounds, and we implore you to take caution when receiving any information regarding your tax status, no matter how legitimate the communication may seem. These fraudulent emails and SMSes are aimed at enticing taxpayers to part with personal information such…

Tax Season 2020 – SMS or SOS?

SARS’s new auto-assessment – what to do when you receive an SMS With SARS’s introduction of their auto-assessment tax filing procedure, many tax-payers will have already received an SMS informing them of the result of their tax assessment. The calculation will be made from information derived from your IRP5 and information submitted to SARS by…

Tax Tips 2020

Filing a tax return is not something we all learnt at school and can be overwhelming not only for first-timers, but for seasoned taxpayers too. Uncertainty can rear its head with the slightest change in circumstances. Money, the earning of it and the sharing of a large portion with the taxman, is part of our…

Working from home – can you claim?

Business owners, sole proprietors, independent contractors and commission-based earners (if more than 50% of your annual income is commission-based) who are working from home have various tax deductions at their disposal. Salaried employees, on the other hand, regardless of working from home, are limited in their options to claim deductions for expenses incurred. However, all…

Changes to the 2020 Tax Season

It’s life, Jim, but not as we know it In response to the economic and fiscal challenges Covid-19 has presented, SARS has introduced a 4- phase tax filing process. This seamless filing season started on 15 April and continues through August 2020. The new phased system is intended to encourage a more digital, streamlined system…