March 22, 2024

2024’s Top Risks for Corporate Leaders

In 2024, corporate leaders in South Africa and around the world are facing more legal challenges than ever before. As the business environment becomes more complex, directors and senior officials are finding themselves at a heightened risk of litigation across a variety of fronts. Factors increasing legal risks for corporate leaders The business world is evolving rapidly, with several factors contributing to the increased legal jeopardy for directors and senior officials. These include: Economic and geopolitical instability: Economic and geopolitical instability places the global economy under significant strain, with inflation hitting highs not seen in a decade and the cost […]
March 22, 2024

Why Honesty Is the Best Policy When Dealing with Your Financial Advisor

The foundation of any relationship with a financial advisor is built on trust and transparency. Clients are expected to share intimate details about their financial lives, similar to how one would discuss health issues with a doctor. This level of openness ensures that advisors can provide tailored advice that accurately reflects the client’s financial health and goals. Shared life stages and understanding A unique aspect of the client-advisor relationship is the mutual understanding that can develop, especially when both parties are at similar life stages. This common ground facilitates discussions that are not just transactional but also empathetic, taking into […]
March 22, 2024

Godongwana Reaches Out to Private Investors

Better-managed PPPs can help South Africa avoid prescribed assets. South Africa may very well be at the brink of a new era, where a greater focus on public private partnerships (PPPs) can help to address the country’s multiple challenges. The ongoing energy crisis, a deteriorating and unreliable logistics system, failing infrastructure, and climate risks—solutions to these challenges require the technical and financial support of the private sector. With the state’s plans to launch unique infrastructure instruments, driving private sector participation may not necessitate prescribed assets legislation. This was the sentiment following the reforms that Finance Minister Enoch Godongwana alluded to […]
March 22, 2024

Three Innovative Approaches to Boost Your Retirement Savings

Retirement planning is absolutely key to your financial well-being, but let’s face it, as those golden years inch closer, a lot of us start to worry if what we’ve saved up is really going to cut it. Sure, sticking to the tried-and-true savings plans is essential, but why not think outside the box a little? There are some pretty smart, yet less traditional ways to beef up your retirement savings without taking on too much risk. Let’s explore three creative strategies you might want to consider: Leverage your annual leave Strategic use of leave days: In the corporate world, senior employees […]
March 22, 2024

Silence is Golden in This Year’s Budget Speech

What matters more than the contents of this year’s budget is what has been omitted from it. Its greatest virtues are four days less tax, no NHI, and liberated electricity markets. The budget does not, for instance, provide for two huge burdens promised by the government—the draft electricity plan (IRP2023) and the National Health Insurance (NHI) (which would, paradoxically, prohibit insurance). The budget subtext is that government-funded electricity and NHI will never happen. Healthcare will remain roughly as is, and there will be electricity supply competition. However, the budget’s single greatest accomplishment is that Tax Freedom Day (TFD) will be […]
March 18, 2024

Essential Financial Lessons Every Parent Should Pass Down

It’s true; financial literacy is as crucial as academic education, and many of us find ourselves reflecting on the lessons we wish were imparted by our parents. Growing up in South Africa, where economic challenges and opportunities coexist, understanding money management from an early age could have set a solid foundation for personal financial success. Here, we delve into the core financial concepts and practices that could significantly alter the course of our financial journeys, emphasising the importance of teaching your children basic financial concepts. Teaching your children basic financial concepts By engaging in open conversations about money, setting a […]
March 18, 2024

Maximising Wealth, Minimising Tax

A comparative look at retirement annuities versus tax-free savings accounts. When it comes to personal finance, every individual has different needs, dreams and financial goals, as well as different pathways to achieving those objectives. One of the most common long-term ambitions shared by many South Africans is to retire comfortably—to live confidently, knowing that there are enough funds available to cover your basic needs. Making regular contributions to a retirement annuity (RA) and supplementing it with a tax-free savings account (TFSA) can be an effective way of getting there. The golden thread: Cashing in on the tax benefits RAs and […]
March 18, 2024

The Business of Business Travel

Business travel means different things to SARS than to taxpayers. While it has been compulsory for recipients of travel allowances to substantiate their claims by means of a detailed logbook for some years, it has become ever more critical to understand exactly what SARS understands by the term ‘business travel’. The simple reason for making the distinction is that business travel is claimable, while private travel is not. So since private travel is not claimable, let’s get that one out of the way up front. The obvious forms of private travel include any travel that relates to your domestic activities—going […]
March 18, 2024

Paying Salaries: What Can Go Wrong?

South African businesses face unique payroll challenges. From strict regulatory requirements to the specific needs of a diverse workforce, managing payroll requires precision, understanding, and the right approach. Here are some critical payroll mistakes businesses often encounter and our expert advice on how to avoid them: Misclassifying employees In South Africa, the distinction between independent contractors and full-time employees is significant, affecting everything from tax obligations to benefits. Misclassification can lead to penalties from the South African Revenue Service (SARS) and disputes with employees. Ensure you’re familiar with the definitions and classifications as per labour laws and classify your employees […]
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