Is your pricing model killing your business?

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	22A Church Street DURBANVILLE 7550	Tel: 021 970 4600 Fax: 021 975 6780 Email: info@sdkca.co.za
Website: www.sdkca.co.za

2022 INCOME TAX SEASON – LESS THAN ONE MONTH TO DEADLINE

SUBMISSION DEADLINES OF 2022 INCOME TAX RETURN

The deadlines for the submission of the 2022 Income tax returns have been published in the Government Gazette No. 2130 dated 3 June 2022, and are as follows:

Electronic submission of Individual - non-provisional taxpayers - 24 October 2022

Electronic submission of Individual – provisional taxpayers - 23 January 2023

Electronic submission of Trust’s tax returns - 24 October 2023

Electronic submission of Companies/Close Corporations tax returns - 12 months from year end

INDIVIDUAL TAXPAYERS - NEW PENALTY RULE

An Administrative Penalty (Admin Penalty) is a penalty levied under Section 210 of the Tax Administration Act (TAA). The Act prescribes the various types of non-compliance which are subject to fixed administrative penalties.

Currently the penalty is imposed in respect of individuals for the following types of non-compliances:

Once-off administrative penalties for –

Taxpayers that were selected for auto assessment but failed to accept, decline or edit and then file their and
All provisional and non-provisional taxpayers that were not auto assessed and submitted a return after the deadline date.

Recurring administrative penalties for –

This type of penalty will be imposed where the taxpayer has failed to submit a return as and when required under the Income Tax Act for years of assessment commencing on or after 1 March 2006 and where that person has two or more outstanding income tax returns for such years of assessment; The penalty will be levied for every month the return(s) remains outstanding for a maximum of 35 months.

The administrative non-compliance penalty for either the failure to submit a return, or late submission of a return comprises fixed amount penalties based on a taxpayer’s taxable income and can range from R250 up to R16 000 per month for each month that the non-compliance continues.

SARS “AUTO-ASSESSMENTS’

SARS will once again be issuing “auto-assessments” to a significant number of individuals this year, with this process commencing in July 2021. Taxpayers, who are selected for “auto-assessments” will be contacted by SARS via SMS. The taxpayer may then either accept the “auto-assessment” or file a tax return to edit the “auto-assessment”.

REQUIRED INFORMATION FOR THE YEAR 1 MARCH 2021 to 28 FEBRUARY 2022

In order to facilitate us in the completion of your income tax return we require certain information such as:

IRP5 Certificates
IT3(b) and (c) Certificates
Vehicle logbook for the year: 1 March 2021 to 28 February 2022
Medical Aid Tax Certificate
Invoice and Receipts for Medical expenses not paid by medical aid
Donations S18A certificates
Retirement Contributions Tax Certificates
Rental and/ or other Business activity income and expenses
Disposals of fixed property or investments during the year

The above list is not comprehensive, and additional information may be required based on your unique tax affairs. Kindly forward the information as soon as you are able to, to the manager responsible for your portfolio at SDK or to tax@sdkca.co.za, to reduce the risk any late submission penalties.

PLEASE TAKE NOTE

If you are a provisional taxpayer and do not remit your third top up payment to cover your 2022 tax liability by 30 September 2022 interest will be imposed from 1 October onwards until date of payment.

If any of your details have changed during the past year, such as address, bank account etc. kindly include the new details when providing your current tax information.

Should you require further clarification, please do not hesitate to contact us at tax@sdkca.co.za.

October 2022 NEWSLETTER

Is Your Pricing Model Killing Your Business?

Sometimes in business you can see the end coming from a mile away. Losing your biggest client, conceding market share to a new competitor, or having your product become obsolete are all obvious signs that tough times are on the way. Some killing blows are a lot harder to detect. Perhaps one of the least noticed and most difficult to see coming, even if you are looking for it, is death by your pricing model and it's easy to understand why.

Some companies accept their pricing models as part of the furniture. They create the prices early on and stick to the models they believe are working for them, all the while potentially missing the tiny signs that bad business is being done and bankruptcy is just over the horizon. We look at why accurate pricing is such a critical part of any business’s success and tell you what to look for to detect that there might be something wrong.

9 Key Metrics Every Business Should Track

Metrics allow businesses to track the growth and performance of various aspects of the business, enabling owners and managers to monitor a company's progress toward its goals, identify and manage proactively potential problems, and make well-informed intelligent decisions.

Many business metrics can be tracked by a company, and those selected will ultimately depend on your business's unique goals. However, 9 key metrics should be tracked on a regular and ongoing basis by every business that aims to increase profits and maximise growth.

In this article, we find out what these 9 key metrics are, how they are measured, what they tell you about the business, and how they might be improved.

Are You Claiming Your Full Tax Relief for Disability-Related Medical Expenses?

If you are a non-provisional taxpayer, you have only a few more days to ensure you have claimed all the permissible rebates before the submission deadline of 24 October.

Among the most useful tax rebates in this regard is the medical expense credit, and it applies to a broad selection of taxpayers. While many taxpayers do claim the medical scheme fees tax credit (MTC), very few know how to claim the additional medical expenses tax credit (AMTC) for qualifying medical expenses, including those related to a disability or physical impairment.

In this article, we look at how SARS defines disability and physical impairment, which expenses qualify, how much tax relief is provided, and what the requirements for a successful claim are.

How The Gig Economy Is Changing Traditional Businesses

The gig economy is here and it is becoming clear the world will never be going back to the way it was pre-pandemic. While once workers dreamt of corner offices and a PA to bring them coffees the modern move is towards working from bed with a coffee machine in the kitchen. Whereas once people were leaving companies to join others, a series of recent surveys have shown that people are now leaving their jobs to work for themselves and contract out to larger entities.

But what does all of this mean for companies that are used to running on the old 9-to-5 business model? Will they have to change and if so, how? Can they adjust to the more flexible models demanded by gig workers and do they really need to? The challenges posed by the new working system and demands from younger generations are not all immediately obvious either, and the ripple effect is going to affect way more than simple work hours and hiring policies. Here's what business managers and owners need to know.

Your Tax Deadlines for October 2022

7 October – Monthly PAYE submissions and payments
25 October - VAT manual submissions and payments
28 October - Excise Duty payments
31 October - Value-Added Tax (VAT) electronic submissions and payments & CIT Provisional payments.

Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for professional, detailed and appropriate advice.

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