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Thread: urgently need tax advice and help

  1. #1
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    Exclamation urgently need tax advice and help

    HI ALL,

    Can you please advise me what I must do about this problem I have.

    I have been a member of a cc since march 08 and have only now found out that I am supposed to pay paye and uif on what I have been getting every month (the staff's paye and uif are done every month as per law). I was told (and stupidly believed) that as a member, you were not taxed but I have now found out differently. What do I do as I have been receiving a set amount every month and have not paid paye or uif. I am so scared as I do not want any trouble and I admit, I do not know much about this kind of thing but I need to do the right thing and carry on the right way, so if anyone can help me and tell me what I must do, I would really appreciate it as it is keeping me awake at night. I travel about 120km a day to and from work, but the company pays my petrol. What rebates or deductions can I claim on my VAT form when I complete it. I do complete one every month but it is only the basic information (sales, purchases). I have read up on the sars website but I want to know if someone can simplify it for me as I get confused when reading up what sars has and when I contact them, it is just as bad. I do not want to misunderstand again and make another mistake.

    Please help, I am really desperate for some one to explain it in simple form to me (trust me, I have been to the websites and still am very confused) about the VAT completion and what I need to do about my own paye and uif. I do not want to find out that I have been doing things wrong when it is to late to do something about it. It is only a small business so we do not have the finances to employ a bookkeeper as yet so I have to do it all myself.

    Much appreciated and gratefull for any help at all.

    S

  2. #2
    Site Caretaker Dave A's Avatar
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    On your PAYE:
    At the very least, start with the PAYE from now on for this financial year.
    If you haven't been deducting PAYE so far, have you made provisional tax payments for yourself for the period March 2008 to February 2009?

    On VAT:
    Is the CC registered for VAT?
    Is your annual turnover over R1 million?
    The trouble with opportunity is it normally comes dressed up as work.

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    PAYE / VAT

    Hi Dave A,

    I have not paid provisional tax for that period and when you ask about our annual turnover are you talking about the bottom line figure or just our sales for the year? What do I do when I have to complete my income tax return for the year March 08 to Feb 09?

    I will start from this month to pay the paye and uif but what worries me is the previous years paye and uif. What are the implications for me because I have not paid paye and uif for that period. What will happen to me? I know I sound stupid but I would rather sound stupid and sort this problem out, than pretend to be clever and end up in trouble.


    Regards,

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    Site Caretaker Dave A's Avatar
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    Don't worry about asking "stupid" questions - I think most of us (and certainly me) started out at a total loss as to what I/we are supposed to be doing. So a lot of us should understand how you feel right now.

    Hopefully Morticia (or anyone else with some serious tax experience) will jump in here somewhere along the way, but let's see how far I can get you.

    First
    Quote Originally Posted by S BTY View Post
    What will happen to me?
    The worst that will happen is you're going to have SARS wanting you to pay them some money. So let's relax a little here - it's not a life or death situation. You're not going to be arrested and thrown into jail. And if you can't pay what they want immediately you can make an arrangement to pay it off.

    Second - It seems pretty clear to me that you need an accountant (whether you think you can afford one or not), at the very least to draw up your final accounts for the 2009 tax year and give you some tax advice. It is highly likely (given the nature of your questions) that the charge will be less than what you might end up paying in unnecessary taxes because you don't know the rules.

    Now on specifics - you seem to have a number of problems, so let's try to chip away at them in some sort of orderly fashion.

    Annual turnover is your gross sales - basically the total value of your invoices over a year. If this total is over R1 million you have to be registered for VAT. If it is less than R1 million a few options open up. So where are we on turnover then?
    Last edited by Dave A; 20-Aug-09 at 08:43 AM.
    The trouble with opportunity is it normally comes dressed up as work.

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    You may take the shortcut route and register as provisional taxpayer and pay the entire liability for Feb 09 as a third "top-up" payment by 30/9/2009. Any outstanding tax amount will start attrackting interest for as long as it remains unpaid. Once SARS process the 2009 IT12 tax return, they will automatically levy all sorts of penalty and interest charges for non- and late submission and payment of 1st and 2nd provisional returns. It is at this stage that you approach them, play open cards, admit that you were ignorant and request for waiver of penalties. Interest is statutory so I doubt that you'll get away with those, but when you look at the bigger picture.....

    As Dave advised, put your ducks in a row and start paying PAYE immediately, that will also count in your favour when you approach SARS - the fact that you remedied the error as soon as you became aware of it.

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    Dave A (20-Aug-09)

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