[Question] Paying tax on freelance work if already employed?

[Samantha92]

Hi

I currently for a company and I am paid a monthly salary. They outsource a certain job to independent businesses and I want to try and see if I can do this job once off to make some extra money. I want to know the following..
1. To be paid I would need to invoice them, can I invoice using my own name or do I need to make up a company name? if I need to make up a company name, am I allowed to invoice for a once off job without registering the company? You could say this is a once off free-lance job but it is complicated because I am already employed by the company I am freelancing for.
2. Would I need to declare this to SARS? I do currently earn enough to pay tax.

This is my first time posting on here, I hope this makes sense!
Thanks in advance

[kavesh]

Hello,

I assume that your company will allow you to do the freelance work for a fee? Generally most companies don't normally allow this as they see it as conflict of interest.

Assuming you are allowed to do the freelance work, you could invoice the company in your own name, or any other name you choose for example, "SAM92 Freelance". No point in registering a company if this a once off job. HOwever, bear in mind that you may need to have a bank account in your chosen name in order to be paid as most companies internal control processes will not permit them to pay into a bank account name that does not match what is on the invoice. My advice invoice in your own name.

And yes you will have to pay tax on the additional income you receive. The plus factor is that you may be able to claim certain allowable expenses against this income, like cellphone, travel, computer expenses, etc.

I hope this helps a little