Paying yourself a salary

[Justloadit]

Hi Justloadit,

For this item are you referring to personal income tax?

3. You pay PAYEE monthly which reduces the adjustment for provisional tax payments in August and February

Yes personal income tax - PAYEE - pay as you earn, also reduces the stress of finding the extra cash to cover the provisional tax payment.
Due to the poor financial situation that we are currently experiencing, I have receiveed money back from SARS, as I have fallen into a lower Tax bracket.

I have been doing this for the past 30 years, and has saved my bacon on many occasions, especially when you look at your figures, and realise that there is insufficient bottom line to pay the wages (my staff and mine) because either company expenses too high, or insufficient turn over on the previous month, or outstanding debtors accounts, that it gives you much motivation to overcome the crappy job of calling out your customer not paying, and being a little more aggressive to collect your money. It also has honed in my skills in job costing and correct quoting, and esuring that I have included all expenses in the job costing.

[Cheery]

Yes personal income tax - PAYEE - pay as you earn, also reduces the stress of finding the extra cash to cover the provisional tax payment.
Due to the poor financial situation that we are currently experiencing, I have receiveed money back from SARS, as I have fallen into a lower Tax bracket.

I have been doing this for the past 30 years, and has saved my bacon on many occasions, especially when you look at your figures, and realise that there is insufficient bottom line to pay the wages (my staff and mine) because either company expenses too high, or insufficient turn over on the previous month, or outstanding debtors accounts, that it gives you much motivation to overcome the crappy job of calling out your customer not paying, and being a little more aggressive to collect your money. It also has honed in my skills in job costing and correct quoting, and esuring that I have included all expenses in the job costing.

Ok, so can pay yourself from the company and then just claim it through personal tax?

[Justloadit]

Ok, so can pay yourself from the company and then just claim it through personal tax?

PAYE is personal tax. Depending on the type of income you have, you may still need to register as a provisional tax payer. You need to speak to your book keeper/auditor for the correct mechanism