Business tax and accounting questions and answers

Our services are priced according to your business requirements, the extent of your accounting records and the functions that you require. We offer completely free consultations, in person, to sit with you and go through all your wants and needs and expectations, in order for us to provide you with a customised quotation, that is affordable and applicable to your business.

Our aim is to save you more money than we can charge you.

Not necessarily. You can register for voluntary VAT if you can proof to SARS that your monthly sales are R40 000 or more. You are however required by legislation to register for VAT once your annual turnover exceeds R 1m.

SARS will issue your company with correspondence specifying what information must be submitted for their review The information must then be uploaded on the E-filling system, upon which SARS will verify the information as per the VAT Return against the information that you submit Should there be any differences, SARS will issue you with a re-assessment.

You will be able to claim back the VAT if the vehicle is a single cab or one and a half cab bakkie. For any other vehicles no VAT can be claimed against your sales.

You will have to ensure that all tax returns are submitted, al debt due to SARS is paid (inclusive of all penalties and interest). This will be applicable to VAT returns, Income Tax returns, PAYE returns and Provisional Tax returns. Once all of this is in order you can apply on E-filling for a Tax Clearance Certificate, which will be issued within 24 hours.

Each year you need to submit an annual return to CIPC. The submission of the return is based on the annual turnover of your business.

Non-submission of an annual return will result in penalties levied, as well as the deregistering of your business

Provisional Tax is not an additional tax that is payable to SARS. Provisional Tax Returns are submitted at the end of February and August, whereby the company declares their turnover and the forecasted profit/loss for the tax year.

Should the company expect that the company's financial results for the year to reflect a profit, an amount is payable to SARS. |Any payments made in provisional tax will be deducted from the tax payable at the end of the tax year.

The PI Score is an indication of your company's level of public interest; in other words - the level to which it must be regulated, and the financial reporting standards required for transparency, in the public interest.

The Companies Act, 2008 [Act 71 of 2008 - Company Regulation 26(2)], has made mandatory the submission of a Company PI Score (PIS) for all private and personal liability companies and close corporations in South Africa.

Your company's Public Interest Score will determine whether your company requires an independent review, or audit, of financial statements, by whom, and what financial reporting standards are applicable. It can also determine the need for a social and ethics committee for private (non-State owned and unlisted) companies with a high PIS.

The higher the PI Score, the higher the requirement for public accountability, i.e. regulation and oversight through financial statements review and audit, and, where applicable, social/etgics review.

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Individual income tax questions and answers

We charge only for service rendered, therefore no percentage or 'cut' will be payable to us

When you receive a travel allowance, SARS requires from you to keep a full history of your travels. A logbook is available on the SARS website which will provide you with the required information, such as number of kilometres travelled, from where and whereto you have travelled and so forth.

In most instances a lumpsum is paid subjective to a tax directive. The fund administrator or employer is required to submit the tax directive to SARS to ensure that you are not held liable for additional tax payments.

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General tax and accounting questions and answers

No, a NPO registered under the Non-Profit Organisations Act 71 of 1997 with the Department of Social Development or a NPC registered with the Companies and Intellectual Property Commission does not automatically qualify for PBO approval. These organisations will qualify only if approved by the Commissioner for this purpose and only if they comply with the relevant requirements and conditions as set out in the Act

The notification of approval as a BPO is issued by the TEU by way of a letter, which contains a unique reference number allocated to the organisation. The original letter must be kept for the orginasations own r4ecords and only certified copies should be provided to other entities or organisations requesting proof of the tax status of the approved BPO.

NOTE: SARS does not issue a certificate

Businesses tend to invest too much money in their inventory - often in the slow moving inventory. The secret to this, is to invest in fast moving inventory, to the extent of how quickly these inventory items are sold.

Another factor can be in what we call solvability of the company. If the customers pay their accounts late whilst you ensure that your suppliers are paid on time, this may lead to a huge cash flow problem. As business owner you must implement controls to ensure that  your customers are paying their accounts in time.