Worried about the tax
implications of spending part of the year in the UK?
You should be.
At present, the UK's residency test says that if you're in the UK for 183 days or more in a single tax
year, or more than 90 days on average in a single tax
year over the previous four tax
years, you're seen as a UK resident.
Now, changes have been proposed based on family, property, work and social connections, says Fin24
So this could have implications if your company frequently sends employees overseas on business.
But don't despair – you can still get some money back from SARS when you send your employees across the country to travel.
Don't forget to claim back for these two common business travel expenses from SARS!
If the establishment your employees will be staying is a registered Vat
vendor, (most hotels and commercial accommodation facilities will be), you can claim back the input tax
charged on this business travel accommodation, says FSP Business
So if your employees are going to stay at guesthouses and bed and breakfasts as part of their employment duties, remember to first check to see if they're registered Vat
vendors before you book, as this is an easy way to get some money back from SARS.
And you may have heard that meals and entertainment claims are automatically outlawed by SARS… not true!
You can actually claim back the input tax
charged on any meals – including alcohol – when your employee travels on business.
But SARS will only accept a business travel tax
claim for your employee's meal.
So any friends or clients that eat with your employee will have to get a separate receipt for their meals or SARS won't accept the full claim, says the Practical Vat Loose Leaf Service
The only way to ensure your business travel claims aren't rejected by SARS…
Make sure your business isn't missing out on these easy ways to get money back from SARS – but remember your employee will have to keep all receipts you're claiming for as proof!