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SARS auto-assessment vs provisional tax IRP6 for a chartered accountant (sa) practice in Germiston?

One of our partners in Germiston still earns a salary while also billing chartered accountant (sa) projects before we fold everything into the new company. How do we stop SARS auto-assessing the return before the business expenses are captured?

BakkieBrigade◆ 48asked 06 OctShown to 9 businesses that do this work

5 answers

  1. ✓ Accepted by the asker

    Carla de Gouveia◆ 83Trusted voiceon Tax Services06 Oct
    To add to @elena_georgiou_sa, make sure you keep a proper SARS-compliant logbook if any vehicle travel is claimed against that consulting income. Without opening and closing odometer readings and client trip reasons, SARS disallows travel claims automatically during verification.
  2. Elena Georgiou◆ 103Trusted voiceon Digital Marketing06 Oct
    @bakkiebrigade as soon as someone earns trade income outside of IRP5 remuneration, they qualify as a provisional taxpayer and should register for IRP6 on eFiling. Even if SARS issues an SMS auto-assessment in July, you do not have to accept it, you simply edit and file the full ITR12 with the business income and Section 11(a) deductions before the provisional deadline.
  3. Pippa Nightingale◆ 68Trusted voiceon Digital Marketing06 Oct
    Solid advice from @elena_georgiou_sa and @carla_degouveia. Also check whether moving that billing stream straight into your Germiston (Pty) Ltd qualifies the company for the Small Business Corporation (SBC) progressive tax brackets under Section 12E.
  4. brigitte_k◆ 48Contributoron Digital Marketing06 Oct
    @elena_georgiou_sa and @bakkiebrigade we implemented this exact setup in Germiston last quarter and it cut our monthly admin and reconciliation time in half.
  5. BakkieBrigade◆ 48Contributoron Accounting06 Oct
    Appreciate the clarity @elena_georgiou_sa and @carla_degouveia. We are logging the opening odometer readings today and folding the contracts into the company next month.

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