I have a couple of questions about paying myself. Obviously the main goal is to reduce the overall tax liability of both myself and my company as much as possible, so my questions are mostly about how to structure the payments.
One thing I'm not sure about is travel expenses (which are very low in general),
- Do I have to pay myself a "vehicle allowance" to deduct expenses?
- Can I (in personal capacity) claim against the company, at say AA rates, for km's travelled? (will keep a log book for this)
I normally put aside 10% of my gross income for donations purposes. I know that in my personal capacity I can reduce my tax liability by up to 5% of taxable income if the donations are made to a suitable Sec 21 company.
- How are donations (of this sort) handled if done directly through the company?
- What is the most tax efficient way to structure this type of donation?
I pay into a medical aid and RA in my personal capacity. I know that the RA payment can be deducted (up to 15%) and the medical aid (R500 for first two members, R300 for further members),
- Can the company factor this in when calculating the PAYE tax liability?
- Does the company need a tax directive to take this into account when paying me?
I've sent a mail to my accountant asking these questions...he just hasn't gotten back to me yet , so I decided to ask my quick response friends here