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Thread: Consulting Services and Tax - Advice Please

  1. #1
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    Question Consulting Services and Tax - Advice Please

    Hi All

    Stumbled upon this forum and have read some really good advice though I can't seem to find an answer to a specific question related to provisional tax. I've been a normal salaried employee for the major part of the last financial year but quit my day job and bought into a partnership that is contracted to provide consulting services (medical, gp) to a hospital group.

    I've recently procured a vehicle to get me to the practice on a day to day basis and this is used predominantly for this purpose (i.e. 90% of the time). Is there an allowable deduction for the installment, insurance, etc that I can claim for in calculating my provisional tax or should I stick to claiming for mileage using a log book?

    Any advice appreciated.

  2. #2
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    As it is a partnership everyone is taxed as individuals in terms of the profits. The direct expenses could be put through as operating expenses but that brings its own complications and probably not much tax relief.
    You could re-structure the "salary package" but you will probably get more tax benefit by incorporating the business as a company, whereupon you can draw individual salaries, taxed as a salary, and then profits as a separate issue and income.
    Anthony Sterne
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

  3. #3
    Silver Member geraldenek's Avatar
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    Somerset West
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    the partnership profit will be split between the partners - the problem is the fact that you use the vehicle it to get to work - a lot of people use their cars to get to work and don't get a deduction for it.

    i don't know how your partnership agreement is structured or if you work from various premises and not just one or if the partnership bought the vehicle but this will change the case a bit.

    if not any of the above is applicable then the trip is regarded as private with no claim
    Geraldene Kapp
    Professional Tax Help

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