Where do you keep your TAX money(under the matters?)

[league_of_ordinary_men]

Hi all

I was wondering where you keep your TAX money?Like do you deduct it from your monthly income and put it in a separate bank account till the TAX man comes knocking or do you put it under the matters and hope your house doesn't burn down?(I know what you will go for first if your house is burning ha ha ha)

[Barker Hicks]

Hello Members,

To save money on taxes, you have to keep up with the latest changes in the law. It depends on you, as knowledge gives you the power to think whatever you do.


Thanks and Regards,
Barker Hicks

[league_of_ordinary_men]

Solved

This is what I did:

I when't to my bank (FNB) and asked what types of accounts I can link to my account(business cheque account) so I found out it I can link a cash stash account,so I did and now I keep my TAX money sepparat just to make things easier and the best part is the account I linked is free so I don't pay anything extra.

[Chrisjan B]

Do they pay you interest?

[Justloadit]

Just a point, use this account number to give to SARS, when they extract your VAT at month end through the eFiling application. In this way they can not make a mistake and take more than their share. It becomes extremely difficult to get your money back when an error is made.

Also note that the UIF, PAYE and whatever is required by SARS, will also be deducted from this same account number, so ensure that you have sufficient funds to cover this Dr order from SARS around the 7th of the month.

[league_of_ordinary_men]

Hi chrismine and Justloadit,chrismine where is an account available that can pay you interest but it takes longer to be able to have access to your money so I chose not to take that account.Plus does any of you know just for interest sake if I keep my TAX money in an separate account and I get payed interest on that money(which is not yet officially TAX money)How do I pay TAX on that money(how do I declare it,under what category does it fall)so the question is actually how do you pay TAX on interest you get?

Justloadit,that is some excellent advise thank you.

[Justloadit]

Any interest earned on a company bank account, will be simply added to the profit the company makes under interest earned, and ultimately the tax will be paid on the total profit declared at year end. The fact that you used SAR's money to make interest is simply a benefit to you. All business actually score on SARS's money until it is paid over. In my case, it simply reduces the overdraft amount, which means I pay less interest to the bank, till the day SARS withdraws it.

[league_of_ordinary_men]

Thanks Justloadit.