If you trade as a PTY you and your business are separate legal entities which means you will have to submit annual income tax for the two. There are unique reference numbers for each submission. Below is what are sars requirements for you as a business
This includes income obtained from outside your employer. In the case of a sole proprietor you are requested to pay tax semi-annually. The first period for the provisional tax is February till August and the second is September till February. Thereafter tax liability is calculated and credited to your tax account. Depending on the calculation it may result in overpayment therefore sars will refund you or a shortfall which you will need to pay into sars by specified date.
If you have staff employed sars tax is deducted on a monthly basis. You as a business will have to register for PAYE, UIF and SDL. Independent contractors that earn more than 80% of their salary from your company will need to be taxed as employees.
If your company has a turn of over 5 million annually you will qualify for Vat, you will therefore need to notify sars and register. As a company you will be able to claim Vat this however, means the company will have pay Vat as well. The Vat process has deadlines that you will need to comply with and if you fail to do so there will be penalties. Ensure all invoices have correct company details on to ensure they are accepted. If you are not registered for vat your invoices should state that you are not registered for vat.
Why hire a Bookkeeper
It is imperative to keep up to date records. This ensures that sars filling is simple and hassle free. You should submit a tax clearance certificate with the submission of sars claims.
The process of sars registration can be complex and if you do not comply with there requirements your business will pay heavy penalties.