Did we post the same blog twice? NO!
So how are there more tips to possibly save money on your tax?
Well, we when started our own business we didn’t have a lot of money, so losing even a little had a big effect. And tax had a huge effect. Looking to other business owners we saw they struggled with the same problem.
But the sad thing was, that most of them just accepted it for what it was. After all, everybody had to pay tax.
My wife and I are not the sit-down and accept type. A lot of people like planning, laying out their plan, but the Elhadad’s are action takers. We took action.
We decided to find and research any way possible to save tax. While we researched, we found a lot of ways that weren’t necessarily applicable to us, but to a lot of business owners, we know. We still put those on our list and share it knowing it might help somebody else.
So yes, there are more tips, and they are coming your way right now.
- Claim commission related expense if you are a commission earner
If you are a commission earner, you will have commission income coded to source code 3606 on your IRP5. If your commission income makes up more than 50% of your total remuneration, then SARS will allow you to deduct all your commission related expenses against your commission income.
We suggest keeping a record of expenditures such as telephone, stationery, employees’ costs, etc.
- Claim business travel if you are a commission earner.
If you are a commission earner, you will have commission income coded to source code 3606 on your IRP5. If your commission income makes up more than 50% of your total remuneration, then SARS will allow you to deduct all your business-related travel against your commission income. SARS will only allow you to claim this travel deduction if you keep a logbook to record all your business travel.
- Claim your daily costs if you receive a subsistence allowance.
If you travel for work and your employer pays you a taxable subsistence allowance, you’re able to claim against the allowance for your expenses – provided you have receipts for them.
You can claim either your actual daily costs or the SARS approved deemed daily rate.
- Keep a logbook if you drive a company car.
If you use an employer-provided car, it is a taxable fringe benefit. This means it will be included in your taxable income and you will be taxed on it. But you need to keep a logbook to record your business mileage, only then can you claim a travel deduction which could reduce your tax owed to SARS.
Thanks to technology there are now even apps you can download for a vehicle logbook. No need to keep a physical book in your car that you may lose.
- Claim expenses if you earn non-salary income
If you are self-employed SARS will allow you to deduct all your business-related expenses against your business income. These are all expenses you incurred to earn your income. Examples of these telephones, stationery, employees’ costs, etc.
So, there you have it 5 more tips on saving tax.
We know not all may apply to you. We only applied a few, but it did make a difference that I can promise you. And share those you can’t use with people who can.
I hope these tips help you next time you need to do your taxes. Helping business owners is the reason I started my accounting firm.
We do offer personal consulting for our clients because we believe in putting our brains together and coming up with a great solution is the perfect opportunity for you to build a stronger business.
If you missed the tips we gave last week, head on over to our previous blog.
Hope you have a great week,