Originally Posted by
clearence
Hi kris. Your drawings are taken from net profit- it is the net profit figure which is taxed. If you were an ltd company your drawings would be taxed at personal rates of taxation.
Example
If your net profit is 100k, and you have taken 30k in drawings. You are taxed on the 100k in the normal way; you are not taxed again on the drawings figure.
Yours accounts should look something like the following:
Sales/Income
less Cost of Sales i.e. Purchases/Stocks etc
= Gross Profit
less Expenses i.e Wages to employees, light, heat, telephone etc
= Net Profit
This net profit figure is then taxed. Your drawings figure will be a portion of this net profit otherwise you will have a negative capital account for the year.
Cashbooks can help you capturing all the payment and receipt for a particular month or duration and If you have employees, you are required to make UIF contributions on their behalf. These contributions are partly deducted from the employees' salaries and are partly paid by the employer
I can also help you with bookkeeping services and registration of UIF.
Best of luck with it.
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