HomeHome SearchSearch MenuMenu Our productsOur products

When last did you get a forecast on your turnover? Here's why you need to do this now!

by , 27 June 2016
When last did you get a forecast on your turnover? Here's why you need to do this now!Are you feeling the pinch? You're not alone. We all are. Costs just go up every month without money coming back in. Just looking around me I can see my friends and colleagues battling to make ends meet. And I see the same with the businesses in our office park. More and more doors are closing and everyone is complaining that turnover and profits are down.

That's why I'm writing to you today. I urge you to get a forecast of your turnover for the year.

If your turnover is less than R1 million every year or your business is starting to drop and you don't think you'll make R1 million this year, you should think about switching from normal company tax to turnover tax.
 
SARS introduced turnover tax years ago to help small businesses like yours. If you're not bringing in the same turnover as larger companies, then why should you have to pay the same taxes larger companies have to?
 
If you switch to the turnover tax system, you can reduce the amount of tax you have to pay SARS every year. In some cases you don't have to pay any tax at all.
 
So, if your business is feeling the pinch and you're starting to doubt whether or not you'll survive the rest of the year, why not take this quick test to see if you qualify for turnover tax.
 
******* Advertisement *******
 
The Practical Tax Loose Leaf includes tax secrets you won't find anywhere else.
 
Secrets like:
  • If SARS asks you to sign this document... STOP! Put down that pen. You have the right to refuse
  • What R5 000 can do to boost your annual deductions, and how to maximise its effect
  • The ONLY way you'll NEVER pay donations tax
  • Use your company car in these three ways and you WON'T pay tax
  • The 22 little known allowances that you could deduct so you pay less tax
  • The seven expenses you incur for legal activities that you can claim deductions on
  • A three-point checklist that guarantees the repairs you make to your office, machinery or tools will qualify as a deduction
  • The three ways to deduct your bad debts
  • Seven expenses to always include in your travel claim to maximise your tax savings
Click here to get your hands on these secrets.
 
*******
 

Who qualifies for turnover tax? Take this quick test to see if you do

 
If you're an individual, partnership, Close Corporation (CC), company or co-operative, you can take this quick quiz to see if you qualify for turnover tax.
 
Most of the questions apply to everyone but there are some questions that are specific to individuals and partnerships and others that are specific to CCs, companies and co-operatives.
 
Take your quiz now…
 
Questions
 
1.         Will your turnover be R1 million or less for the year of assessment?
2.         Is your business registered for VAT? If it is, are you're willing to deregister it for VAT?
3.         Does your financial year end fall on the last day of February?
4.         Can you confirm you haven't been registered for turnover tax in the last three years of assessment?
5.         If you earn income from 'professional services', can you confirm it's not more than 20% of the total income for the year? Examples of professional services are tax consulting, bookkeeping, auditing, etc.
6.         If your business disposes of assets, can you confirm the total income from this disposal (over the last three tax years) is less than R1.5 million?
7.         Do you agree that your business isn't a public benefit organisation (PBO) or a recreational club?
8.         For individuals and partnerships, do you declare the business isn't a labour broker without a SARS exemption certificate?
9.         For CCs, companies and co-operatives, do you declare the business isn't a personal service provider?
10.     If the business is a partnership, are all the partners individuals throughout the year of assessment?
11.     If the business is a CC, company or co-operative, do you declare all shareholders or members will be individuals throughout the year of assessment?
12.     Can you confirm that the owner, any partner, shareholder or member of the business doesn't hold shares or interests in a close corporation, co-operative or company (if your business is one of these three, they can't hold shares in another CC, company or close corporation) other than the following exceptions?
·      In listed South African companies;
·      In collective investment schemes;
·      In body corporates and share block companies;
·      In venture capital companies;
·      Of less than 5% in social or consumer cooperatives;
·      Of less than 5% in cooperative burial societies or primary savings co-operative banks;
·      In friendly societies;
·      In a company that didn't trade during any year of assessment and which didn't own assets with a total market value that exceeds R5 000 during any year of assessment;
·      In any company that has taken steps to liquidate, wind up or deregister.
 
Did you answer yes or no? Let's see what your answers mean…
 
 
******* Advertisement *******
 
Save thousands of rands, and be in total control of your business taxes!

What's more, by understanding how SARS taxes and administers your business, you'll avoid penalties – saving your business even more money! And ensuring that your business has a squeaky clean record with SARS.

Turnover Tax 101 tackles Turnover Tax from start to finish (and answers questions you never even thought you'd have).
 
Find out how, with our exclusive eBook – Turnover Tax 101. It explains how to register, how to calculate your tax liability, how to pay SARS and how to complete your Turnover Tax returns.
 
You won't need to hire a consultant to get this right. With Turnover Tax 101, you'll be able to do it yourself. 

Discover how to save with Turnover Tax 101 now!
 
***********

So how did you do?

 
If you answered no to any of the questions, sadly your business won't qualify for turnover tax. Even if your turnover is less than R1 million per year.
 
But if you answered yes to all of them, you'll qualify for turnover tax. And once you've had a look at your forecast and see your turnover won't be more than R1 million, then you need to make the switch today.
 
To find out:

·         How to apply for turnover tax in 14 easy steps;
·         The six steps you must take to complete your turnover tax return;
·         The only three times you'll ever pay turnover tax; and
·         How to pay turnover tax
 
Get your copy of the Practical Tax Loose Leaf now.
 
P.S. To learn more information on turnover tax, such as how to pay turnover tax, as well as how to fill out the TT02 form using the SARS tax tables, simply page over to Chapter T 16: Turnover Tax in your Practical Tax Loose Leaf Service handbook.


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>