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Anyone who receives income (or to whom income accrues) other than remuneration is a provisional taxpayer. Most salary earners are therefore non-provisional taxpayers, as long as they have no other sources of income. Receiving exempt income, as below, does not make you a provisional taxpayer:

• If you receive interest of less than R23 800 if you are under 65
• If you receive interest of less than R34 500 if you are 65 and older
• If you receive an exempt amount from a tax-free savings account

Section 23(b) of the Income Tax Act states that a tax deduction for home office expenses will only be considered:

• If the room is regularly and exclusively used for the purposes of your trade, e.g. employment, and is specifically equipped for that purpose. The home office must therefore be set up solely for the purposes of your trade.
• If your remuneration consists only of a salary and similar income, your duties must be mainly performed in this part of the home. It therefore means you must perform more than 50% of your duties in your home office.
• If more than 50% of your remuneration consists of commission or variable payments, based on your work performance, more than 50% of those duties must be performed in a place other than in an office provided by your employer.

The types of home office expenditure referred to in section 23(b) are those that are closely linked to the premises, namely rent and cost of repairs, and expenses in connection with the premises, which could include rates and taxes, cleaning costs and electricity.

Other typical expenditure that may qualify for a separate deduction in respect of maintaining a home office include general wear and tear on items used for trade purposes in the office, office equipment, furniture, fittings and repairs, phones, internet and stationery.

It is compulsory for a business to register for VAT if the total value of taxable supplies made in any consecutive 12-month period exceeded or is likely to exceed R1 million. A business may also choose to register voluntarily for VAT if the value of taxable supplies made or to be made is less than R1 million, but has exceeded R50 000 in the past 12-month period.

This depends on a number of issues, including the size of the business, the target market, the level of risk associated with the business, tax-related issues, cost implications and client perceptions. We would be happy to give you further advice regarding this in a free consultation session.

Under the new Companies Act, most smaller companies registered as a (Pty) Ltd will no longer require an audit. An independent review will only be required in certain limited circumstances. In most instances, the compilation of the annual financial statements and an opinion expressed on these by an independent professional accountant will suffice.

Yes, this is what we do. Your focus should be on generation of income, as opposed to being buried in paperwork. For most of our clients, we attend to the entire accounting function on a bi-monthly or monthly basis, including VAT and management reporting. This means you are not lumped with a huge bill at the end of the year and have regular access to quality information during the year. This approach is however not cast in stone and we cater to each client’s specific needs.

This is where we excel as registered tax practitioners. Our primary function is to ensure that both you and your business receive all the tax deductions that you are legally entitled to. If your business is profitable, we will save you money from a tax perspective.