[Question] PAYE with Erratic Income.

[Wayne.W]

Hi Guys,

I hope someone can shed some light on my question.

NB:I started my business(PTY) just this july. I am registered for Provisional Tax and PAYE. I only earn an income from my Company. No Extras.

I have my own small 1 man company(PTY) The income to my company is very erratic each month to the point that some months I cant give myself a full salary, sometimes half or even a quarter etc, due to companies not paying sometimes. But even though I don't get a full salary, I still pay PAYE based on my Maximum potential Salary. How do I pay a constant PAYE if I cannot afford it. Am I able to pay a PAYE based on what I actually pull from the company each month and not an amount based on my maximum potential Salary(Which I don't seem to ever get). At the end of the day, I cant pay myself and I am going backwards, if what little income I get gets funneled to SARS. Please help clarify this question once and for all?

I have put forward this question to SARS, but there is a long wait for responses.

Thanks for any insight.

Wayne.W

[Dave A]

Am I able to pay a PAYE based on what I actually pull from the company each month and not an amount based on my maximum potential Salary(Which I don't seem to ever get).

Yes, absolutely.

And it would seem from what you have said, definitely the way to go.

[HR Solutions]

Yes as Dave said - you download the 2018 Paye Tax table and tax yourself on your monthly earnings. EG if you earn R20000 the one month - tax is R2797.00. If you earn R30000 the next month - tax is R5667.00