So you are a sole prop and essential service provider, but you have NO idea how to go about trading? After speaking to someone from the DTI this morning I have the steps needed for you to be able to trade.
The first thing is you need to establish if you are an essential service provider, you can do that here http://www.gov.za/documents/disaster-management-act-regulations-address-prevent-and-combat-spread-coronavirus-covid-19 once you establish if you fall under the essential services bracket you need to print out the attached form below.
You will need to print this on your company letterhead, complete the details and issue to each staff member – you need to list who the owner of the sole prop is and each employee that works under you, this is needed to be on your persons should you need to travel. You will need to also get an affidavit from the police station stating you do operate as a sole prop.
If you have any questions that are not addressed herein please feel free to contact me on my email address.
Currently, South Africa is on Lock-Down, meaning no one is allowed to operate unless you are an essential service provider. That means for many, our doors are shut with no income being generated. Government has put in place a relief fund for SMME’s and other forms of enterprises
Below is a PDF document that outlines all the funding available and the process of application
Tax Season starts next month (1st July 2019), and I know that some are excited and some are just petrified. Most of the time, the fear comes from uncertainty or the fact that they have not lodged their returns and rather choose to take the ostrich approach…
“Do I need to lodge a return? Should I submit, I honestly don’t make enough money to lodge”
I hear this on the regular… HOWEVER, if you are self-employed (Sole Prop / PTY) it doesn’t matter what your income/sales/turnover is you still have lodge a tax return. The only time that you are exempt (and I still recommend that you submit a return) is when you are employed by a business and only earn 1 source of income and have NO deductions other than PAYE and UIF.
I know its easier to look away than face any returns that are outstanding but I promise you, if you just start somewhere you are already further than where you were yesterday.
If you want to chat about your tax or accounting I am just a mail away.
HOW DOES YOUR MARRIAGE CONTRACT AFFECT YOUR TAX RETURN?
ICOP – In Community of Property
- Interest – Jointly held bank account
- Spouse A: 50% of Interest
- Spouse B: 50% of Interest
- Foreign Dividend paid to spouse A
- Spouse A: 50% of Dividend Income
- Spouse B: 50% of Dividend Income
- Spouse A: 50% of income and expense
- Spouse B: 50% of income and expense
OCOP – Out of Community of Property
- Interest paid to Spouse B
- Spouse A: Nil
- Spouse B: Will be taxed in the hands of the owner of the investment at 100%
- Foreign Dividend paid to Spouse A
- Spouse A: Will be taxed in the hands of the owner of the investment at 100%
- Spouse B: Nil
- Rental income; owned by spouse B
- Spouse A: Nil
- Spouse B: 100% Rental income and expenses
- Rental income; each spouse owns 50%
- Spouse A: 50% of rental income and expenses
- Spouse B: 50% of rental income and expenses
source: Tax Talk issue 70
So lately I have come across a lot of employers who are asking for employees tax numbers before they are considered for a position.
This issue has actually been addressed with SARS and they have stated the following ” While SARS will readily assist persons who approach our branches to register, such processes are placing an unnecessary burden on both the prospective employees and on SARS branches”.
SARS goes on to state that they don’t require a person to have a tax number prior to being employed for the first time.
SARS has made it very easy for employers to register their employees for tax by various means;
– Registering them on Easyfile
– New applications on SARS Efiling
– Bulk registrations on Easyfile
Source; TaxTalk issue 71