Home office expenses: Should you claim?

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August 2021 NEWSLETTER

Home Office Expenses: To Claim or Not to Claim?

‘Working from home’ again became a government directive at the end of June, as the third wave of Covid-19 swept across the country and an adjusted Alert Level 4 lockdown was imposed on South Africans.

It again brings to the fore the question of how to deal with the expenses of setting up and maintaining home offices, which many employees are now incurring either because they are working from home by choice, or because they are compelled by government to do so unless it is ‘absolutely necessary to perform work on-site’.

Find out when home office expenses can be deducted from your taxes; what can and cannot be deducted; the pitfalls to avoid if claiming these expenses; and why a cost-benefit analysis is crucial to ensure the right decision is made whether to claim or not.

6 Tips on Surviving the Failure of a Big Client
	It's no secret that the business environment is tough, particularly for small enterprises where the margins are always a little thin. One late payment from a client can cause consternation, but what happens when that client fails? The chances of one of your major clients collapsing before paying you is very real and sometimes there may not be any warning whatsoever. This situation can be a death knell for a company that has already spent the expected money. So, when a client goes bankrupt, how do you avoid slipping under with them? Here is a list of six things you can do to ensure your client's misfortune doesn't become your own.

Alternative Funding for Your Small Business

Entrepreneurship has been increasingly encouraged by government in the past few years, as the barrier for entry is continuously being lowered to stimulate participation in business. Funding has however proved to be a high hurdle for entrepreneurs.

When South Africa recorded a 32.6 percent unemployment rate a few months ago, the general concept of entrepreneurship, and small business funding, got more attention than usual. The thought is that small-scale entrepreneurs are underfunded due to the large demand for capital and that new entrepreneurs need to demonstrate their likely ability to stay afloat before any cash injections are directed their way. These two considerations are critical in a country where 70 – 80 percent of small businesses fail within 5 years.

Let’s have a look then at the funding alternatives available to your small business…

Audit Your Employee Taxes, Before SARS Does

Employers in South Africa are now under increased and intensified scrutiny, with SARS and the NPA teaming up in ‘a joint venture to prosecute’, which will initially focus on non-compliant employers - those that do not file their returns and deduct employee taxes and levies without paying these over to SARS.

Whether employing one or a hundred thousand people, companies in South Africa are compelled to deduct employee taxes and levies every month, declare the deductions on a return and pay the amounts over to SARS, with annual reconciliations, creating a substantial administrative and financial burden, accompanied by stiff penalties for non-compliance.

Find out here how to conduct an audit of your employee taxes to ensure they are accurate and compliant, and when it is time to call in professional assistance.

Your Tax Deadlines for August 2021

7 August - Monthly Pay-As-You-Earn (PAYE) submissions and payments

25 August - Value-Added Tax (VAT) manual submissions and payments

30 August - Corporate Income Tax (CIT) Provisional Tax Payments, where applicable

30 August - Excise Duty Payments

30 August - Personal Income Tax (PIT) Provisional Tax 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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