With both fuel and vehicle ownership costs at historic highs, it is more crucial than ever for taxpayers to keep accurate, up-to-date and securely stored logs of all business travel as well as proof of related travel costs. This is because expenses related to business travel can be deducted from taxable income – but only if a logbook that complies with SARS requirements is kept current for each vehicle and stored as per the regulations.

There are also several other tax implications relating to travel expenses, travel allowances and reimbursements for business travel. To maximise the tax benefits related to business travel for both a business and its employees, speak to your accountant to fully understand the tax implications for all concerned. 

From damaged equipment, and staff and machinery sitting unproductive for hours, to numerous missed deadlines, there is no doubt that constant loadshedding is taking a heavy toll on South Africa’s small to medium businesses. With no short-term solution in sight, it’s clear that to survive and hopefully thrive South Africa’s entrepreneurs are going to have to dig deep and come up with some novel solutions. 

While all businesses are unique and will have to develop their own individual plans for coping with loadshedding in the long term, we have put together a few tips that can be generally applied by small businesses to try and take some of the sting from the daily blackouts. Here are our five top suggestions for surviving loadshedding as a small business.

Previously, company losses could (subject to certain requirements) be offset against 100% of taxable income in the following year, with any balance rolling over to subsequent years. Under the new rules, an assessed loss can now only be set off against 80% of taxable income or R1 million - whichever is higher - in the relevant tax year, with the remaining balance still rolling over. 

Some companies, like those with taxable incomes under R1 million, are unaffected, but for others, it means that even if their assessed loss balance far exceeds their taxable income, they will from now pay tax on up to 20% of taxable income. There are other complexities involved, including wording still to be clarified, so read on for more detail…

“Finally, we pay tribute to the millions of South Africans, whose resilience and courage during these times of pandemic and economic hardship, is an inspiration to all of us who have the privilege to serve in the public sector.” (From the 2022 Budget Speech)

Finance Minister Enoch Godongwana has invited the public to share suggestions on the 2023 Budget he is expected to deliver on Wednesday 22 February 2023.

Go to National Treasury’s “Budget Tips for the Minister of Finance” page and fill out the online form. 

• 7 February - Monthly Pay-As-You-Earn (PAYE) submissions and payments
  
  
• 27 February - Excise Duty payments
  
  
• 28 February - Value-Added Tax (VAT) electronic submissions and payments & CIT Provisional payments where applicable.