[Question] IRP5 issued with wrong tax code and UIF deduction

[avdbank]

Hi,

I am an independant contractor and the company issued me with an IRP5 displaying my income under employee tax code 3601 and they also deducted UIF.

Now they are refusing to cancel and re-submit my IRP5 as they say it cannot be done, but they are giving me the correct tax code this year.

Do you agree that this cannot be done?

Surely they can just ask SARS to cancel the IRP5, re-submit one stating my income under the correct tax code and ask that the UIF is written back as a mistak was made (not on purpose)?

Advise will be appreciated.

Regards,
A

[Dave A]

Sorry it took a while to get a response, but hopefully this helps.

I chatted to a SARS auditor about this. Apparently it can be amended, but it'll be a real PITA for sure.

That said, at a practical level there's no need for you to be out of pocket for the client's mistake. For example, they could pay you out for the incorrectly deducted UIF.

Chasing the client for the PAYE wouldn't be fair though as that will come out in the wash when you do your annual return.

[avdbank]

Hi Dave,

Thanks a lot for following up on this!

The few bucks UIF is not a big concern. And the PAYE which has been deducted I do not even try and fight with clients anymore as they are all woried about SARS keeping them responsible with it. (Btw, I am an IT contractor doing contracts lasting 6-12 months on average).

My problem is that with an income code of 3601 rather than 3616 I cannot make any deductions for expenses.

I sent many many emails to the payroll manger. Basically she just replied it cannot be changed now and even after asking many times to specify the SARS regulation or clause in the IT Act preventing the change she cannot tell me why it cannot be changed. Now my emails are being ignored.

So any advise where I go from here even if it is a PITA for them? I would prefer not to go the legal route due to the possible costs involved.

Regards,
Adriaan

[Dave A]

Try approaching SARS directly to get a tax directive.