Tax breaks for small business

Did you know that there are a number of tax concessions available to small business? If not, here are two tax breaks that are sure to cheer you up!

2012 Budget expectations

Tears or joy? What can we expect?

An increase in the income tax rate?

Given the lower growth forecasts, a limited tax base and spending pressure, government might be expected to increase current tax rates to bridge the gap between income and expenditure.

Provisional tax – a basic guide

Know the rules! It’s worth your while!

So what is provisional tax?

In a nutshell, provisional tax is simply a system that makes taxpayers provide for their final tax liability by paying at least two amounts in the course of the year. The final liability, however, is determined upon assessment.

According to Sars, the aim of paying provisional tax is to help taxpayers meet their liabilities in the form of two payments during the year, instead of a single, large amount after year-end.

The new medical tax credit

With effect from 1 March 2012, a new medical tax credit system will become effective. In the past, the tax man permitted a capped deduction of medical aid contributions from taxable income. Going forward, this capped deduction amount will fall away and will be replaced by a medical tax credit.

The dreaded ‘P’ word – Don’t be caught out!

For people in the tax world, ‘P’ is for penalties. Don’t be caught our by Sars for not filing your tax return on time! Sars will slap you with administrative penalties if you fail to file your tax return before the deadline.

Setting up a trust?

Thinking about setting up a trust for your kids? Well, here are some of the things you need to know before giving away all your possessions.

A trust can be an effective tool for protecting your assets from business risks, creditors or in the event of a divorce. A trust can also be used to structure one’s affairs in a tax-efficient manner. However, if the trust is not set up correctly, it might not be a valid trust and the desired benefits might not be achieved.

Employers are required to reconcile PAYE twice a year

Employers are required to file their PAYE tax reconciliations biannually. The submission for the period 1 March 2011 to 31 August 2011 is due between 1 September 2011 and 31 October 2011. The preparation of employee tax certificates is done for reconciliation purposes only and employers should not issue tax certificates to their employees.