Fresh Startup

[Dave A]

On VAT - whether to register or not really depends on quite a lot of different factors. This was one of the earlier discussion on whether to register for VAT, but there have been quite a few others since.

[sykotik]

Read a couple of the VAT registration related threads, what ive gathered is avoid VAT registration, unless my turnover exceeds 1 mil p.a i can do without the formality right now....

Also what about tax? ive never registered with SARS... sadly ive never been in the bracket for PAYE until recently ive noticed PAYE on my payslip? What are my tax obligations on a personal capacity and when operating a business as a sole prop?

[Mark Atkinson]

Read a couple of the VAT registration related threads, what ive gathered is avoid VAT registration, unless my turnover exceeds 1 mil p.a i can do without the formality right now....

Also what about tax? ive never registered with SARS... sadly ive never been in the bracket for PAYE until recently ive noticed PAYE on my payslip? What are my tax obligations on a personal capacity and when operating a business as a sole prop?

I'd say that's about right for VAT.

Regarding income tax as a sole proprietor. Long story short: You will need to add all your income earned from the site to your taxable income and you will be able to deduct the expenses you incurred in producing that income. It's obviously a lot more complex than that, but that's the just of it.

At the end of the year you will submit a tax return to SARS detailing the income you've earned (from your job as well as your website) and calculate your tax payable. (You will be able to deduct all the PAYE payments paid by your employer and pay in the net tax payable.)

Make sure you keep comprehensive records.

Does that make sense?

[Dave A]

Just to add to Mark's observations -

Also what about tax? ive never registered with SARS... sadly ive never been in the bracket for PAYE until recently ive noticed PAYE on my payslip?

Given the new requirements of employers from SARS, your employer would probably have registered you for income tax if you weren't previously registered. Wouldn't hurt for you to ask your employer though just to double check.

[sykotik]

I'd say that's about right for VAT.

Regarding income tax as a sole proprietor. Long story short: You will need to add all your income earned from the site to your taxable income and you will be able to deduct the expenses you incurred in producing that income. It's obviously a lot more complex than that, but that's the just of it.

At the end of the year you will submit a tax return to SARS detailing the income you've earned (from your job as well as your website) and calculate your tax payable. (You will be able to deduct all the PAYE payments paid by your employer and pay in the net tax payable.)

Make sure you keep comprehensive records.

Does that make sense?

Definately, Ill follow up with my employer too see if i have been registered income tax. Thanks guys!!

On another subject, just to be clear there is no formal registration for a sole prop? in terms of banking do i operate with my personal account? or do i need to open an alternate seperate account? Not sure how to go about it with regards to the business name etc??

[Mark Atkinson]

Yeah quite right. No registration for a sole prop.

You can operate with your personal account, but as soon as you're actually making money from the business I would just look to open up a side account, it makes matters a bit easier.

Regarding the business name, you can trademark it if you feel the need, but otherwise choose a business name and go for it. I would just do a quick search to make sure you aren't infringing on anybody else's trademark - because that might be awkward.