tax directive

[quintonscholes]

Sars have being dragging their feet with issuing my tax directive - meaning another months salary and commissions have been paid on my current tax bracket.
My tax consultant has advised me that once the directive has been issued it is valid for the current tax year
Meaning that I should me able to go to hr / the paymaster and get the years (march till now) paye back according to the new rate.
I somehow don't think my company will do that.
Can somebody please advise me on this matter
Thanks!

[Dave A]

I could understand them being reluctant to hand out money from their cashflow to finance a refund, particularly if it meant they had to go back to SARS for a refund with their next return. However, if they are using a progressive tax calculation, it would be no skin off their nose to give you a PAYE holiday until your taxable income (YTD) is back in sync with your PAYE contributions (YTD).

In that event, you might want to bear in mind that PAYE deductions will get back to their correct level at some point before you make any changes to your lifestyle

[Morticia]

If they are prepared to go the extra mile, your payroll department can process the adjustment now, i.e. in the next payroll run. If not, the overpayment will sort itself out at end of February when the final tax adjustments for the entire payroll is processed and you will have a little windfall in Feb 2010 payslip. 3rd option if no payroll adjustments are made (unlikely), you will claim refund from SARS once you submit and SARS assess your 2010 tax return.

Bottomline, you will not be out of pocket for the extra tax deductions, it is merely a timing issue.

[Dave A]

If not, the overpayment will sort itself out at end of February when the final tax adjustments for the entire payroll is processed and you will have a little windfall in Feb 2010 payslip.

I hate leaving it to the last pay period of the financial year like that to reconcile the PAYE for staff. The one year I got caught out where after doing the recon, the company was due a small refund on PAYE.

What I did in the end was a voluntary overpayment on PAYE for my salary to end up with a zero contribution balance for the company. It wasn't a sacrifice as I would have had to pay the money as a provisional tax payment anyway

But the lesson was learnt. Ever since then I've gone with a YTD approach to calculating PAYE deductions rather than just assessing each month separately.