Nuus
June 5, 2024

Build Your Emergency Safety Net Fund Today

Ask any trapeze artist, and they’ll tell you that a safety net is a non-negotiable part of flying high. While few of us are circus performers, an emergency savings fund is still one of the most important requirements for our peace of mind and financial stability. Life has a way of throwing curveballs.  Whether it’s an unexpected car repair, an unavoidable medical bill, or a change in employment status, unexpected events are waiting around each corner. While we won’t ever know when these little surprises might take place, with an emergency fund in place, at least we are prepared to […]
June 5, 2024

Pension Funds and Emigration

Investing in an offshore retirement fund is one way of growing your wealth in a stable economy over the longer term, or even gaining residency in a foreign country. However, for South Africans, this scenario presents as many challenges as it does opportunities, and should only be considered after consulting with a financial advisor and tax expert. When you invest offshore directly, whether in a retirement fund or another funding vehicle, the tax aspects can be tricky to understand, and several factors must be considered. If you fall foul of the domicile-specific tax rules, you could end up losing a […]
June 5, 2024

Struggling to Make Ends Meet at Varsity?

South African universities recently opened for the first term of the year—but for many students, money worries have overshadowed the excitement of returning to campus. Education costs typically increase at a higher rate than general inflation, and affordability is a major issue for most students. The average cost of a South African university education could be around R107,600 per year by 2025, and R254,700 by 2035, according to Marius Pretorius, head of marketing: retail savings and income at Old Mutual. Students from families with an annual household income of less than R350,000 are eligible for funding from the National Student […]
June 5, 2024

The Tax Treatment of Relocation Expenses

Transferring staff?  There are tax implications for them … and for you! If your business has branches in different locations, one of the best ways of offering key staff opportunities for career growth is to allow them to relocate. Relocating an existing staff member who has come to know and understand your systems, procedures, and how you do business is often preferable to hiring a new person from outside, who perhaps does not have the benefit of such exposure. While many staff members may wish to relocate for personal or lifestyle reasons, it is often the employer itself that requests […]
June 5, 2024

Thrive in Today’s Market: How Business Advisory Services Fuel Growth

In today’s dynamic business environment, simply offering a quality product or service isn’t enough. Success hinges on strategic planning, sound financial management, and the ability to adapt. Business advisory services bridge this gap by providing the expertise you need to navigate challenges, seize opportunities, and achieve sustainable growth. Unlocking financial potential: – Expert guidance: Advisors become an extension of your team, analysing your financial health to identify areas for improvement. They craft strategic plans aligned with your business goals, ensuring your financial resources are allocated effectively. – Data-driven decisions: Budgeting and forecasting become powerful tools for maintaining financial stability and profitability. Understanding […]
June 5, 2024

What to Do if You Owe SARS Money

Owing money to the South African Revenue Service (SARS) can be stressful, but don’t panic. By understanding your options and taking prompt action, you can resolve the issue and minimise the impact. This guide will equip you with the knowledge you need to navigate a tax debt situation. The importance of addressing tax debt Take tax debt seriously. Not paying your taxes is a criminal offence under the Tax Administration Act, potentially leading to penalties or prosecution. Addressing the issue promptly is crucial. How to find out how much you owe The first step is determining your tax debt amount. […]
June 5, 2024

Why Should You Hire an Accountant?

When business owners work on growing their companies, budget constraints often push them towards a do-it-yourself approach to managing their finances. Many see hiring a professional for bookkeeping or accounting as an unnecessary expense. However, this viewpoint fails to recognise the tangible advantages that an accountant can offer. It’s important to reframe this decision, not as a luxury but as a strategic investment that can lead to meaningful benefits for the business. The hidden costs of DIY financial management When you choose to handle your business’s financial tasks on your own, you’re not just sacrificing your weekends—you might also be […]
June 5, 2024

Travel Claims, but No Allowance?

For commission-earners and the self-employed, the rules are slightly different—but travel costs can be claimed. The mistake that I make when writing articles about travel allowances is that I tend to forget that not all of us are ‘wage slaves’.  Indeed, there are many taxpayers for whom the saying, “If a man will not work, he shall not eat” is a daily reality—those who are self-employed, as well as those who derive their earnings from commission. But the very fact that they don’t earn a regular salary means that they also do not receive a fixed travel allowance.  And the […]
April 22, 2024

Two Retirement Pots

Limited access, compulsory preservation Is the proposed two-pot retirement system ‘stirring the pot’ in the retirement fund industry? THE DRAFT tax legislation released by National Treasury on 29 July 2022 contains details of the much anticipated two-pot retirement system.  The proposed changes are quite far-reaching—although there will also be criticism that the changes do not go far enough. The intention is for the changes to address the following two concerns: The inability of households in financial distress to access their retirement savings prior to withdrawal or retirement; The failure to preserve funds for retirement, in those instances where members withdraw […]
April 22, 2024

Taxing Employer-Paid Gratuities

It’s not only your retirement fund that may pay out when you decide to call it a day. Some time ago I wrote a series of articles dealing with the various payments that an employee might receive when leaving an employer. However, while those articles dealt mostly with what went wrong between the former employer and SARS, this article covers the employee tax treatment of lump sum amounts that are paid by an employer upon termination of employment. While the list is not exhaustive, these are the typical payments that would be over and above those that one may receive […]
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