A notification from SARS lands in your inbox. You're being audited. And not just any audit. A field audit...
So what now?
Well, ordinarily, you'd have to stop everything you're doing and prepare for your audit.
Look for documents, pull your finance team away from their busy workload, just to make sure you have everything ready for SARS when they pitch up at your door.
But wait... You d... ››› more
My friend Gordon is one of the directors of an outsourced training company. He's always flying around the country to present training for his company's clients, and often goes on training courses overseas.
He asked me which portion of his travel, subsistence and accommodation costs his company can claim back as input tax, because he doesn't receive a regular subsistence allowance. He simply kee... ››› more
Every time your business sells, donates or scraps an asset, for gain, SARS takes some of your money as capital gains tax. And this chunk gets bigger every year.
In 2015 if you sold an asset you would have paid 18.65% tax on it.
In 2016, the current tax year, you stand to pay 22.4%.
That's a 3.75% increase in just one year.
Let me put that into perspective for you and show you a way to ... ››› more
One of the most common mistakes sole proprietors make on their tax return is reflect their income under code 3601.
Yes, code 3601 is the correct code for regular income. But under this code, SARS will tax you (sole proprietors) in full, with very few deductions.
Let's look at the right code you should use...
Put all your income and expenses under the correct section on your tax return!
... ››› more
Did you see an increase in the number of staff calling in sick over this holiday period? Are you expecting a flurry of sick notes from them because they were absent on the working days that fell amidst all the public holidays? We receive a lot of interesting questions about sick leave... Questions that are probably on your mind too!
Let's have a look at them…
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Do you know when you should issue a credit note? What about dealing with Vat on credit notes? Read on to find out what these two things include so you can comply with the Vat Act and avoid hefty penalties.
The Practical Vat Loose Leaf Service explains that credit notes are issued when a sale or a supply takes place and one of the following subsequently happens to that supply (sale):
The... ››› more
According to the new Construction Regulations 2014, it's your duty as the client to provide induction training for any contractors on site. Here's a checklist of eight items you must include in your induction training for your contractors. According to the new Construction Regulations 2014, it's your duty as the client to provide induction training for any contractors on site. It's a vital part of... ››› more
The Occupational Health and Safety Act (OHSA) contains 50 sections and 20 sets of regulations. The different regulations specify the specific requirements you must adhere to. This includes requirements about Personal Protective Equipment (PPE). Read on to find out what the general safety regulations require when it comes to PPE.
When it comes to PPE, you can't just comply with the regulations y... ››› more
Some employees do all they can to stay away from work - call in sick in the morning, go home early so they don't miss a doctor's appointment, not come in at all because it's their aunt's funeral (AGAIN!). That's all good and well if it's already been discussed with you beforehand or they bring you proof of their absence, like a sick note. But what do you do if your employee goes absent without lea... ››› more
As a Vat vendor, you have a duty to pay Vat on time.
But, the reality is that the current economic situation is making it harder to comply with this legal duty. Don't even get us started on unforeseen disasters that strike at any moment and make it impossible to meet Vat deadlines.
But, it's not all doom and gloom.
You have options if you can't pay SARS.
Read on to find out what to do... ››› more
You have to tread carefully when it comes to Vat refunds.
SARS scrutinises these and it'll punish you if it finds errors. And this means you can say goodbye to the cash injection you were hoping to get.
But we've got your back as always.
Today our experts reveal the three things that'll get you in trouble with SARS when it comes to Vat refunds. Read on to find out what they are so you c... ››› more
The Occupational Health and Safety Act (OHSA) requires you to conduct toolbox talks in your workplace. But what are toolbox talks? And what are the benefits of conducting them besides complying with the OHSA? Read on to find out why you need them...
'A toolbox talk is a short safety talk [that's] delivered at the workplace and on a specific subject matter. The objective is to raise awareness of... ››› more
'As a rule, unless the temporary worker is merely relieving a permanent post, it is most unwise for you to employ someone as a temporary worker in a position that is permanent,' says The Labour Law for Managers Loose Leaf Service. Here are three reasons why you shouldn't break this rule ...
According to The Labour Law for Managers Loose Leaf Service, the purpose of an employment contract is to ... ››› more
One of the common questions regarding sick leave is: Can an employee take all his sick leave or must it be pro-rated? Read on to find out what labour law says about this.
The answer to this leave question is as follows:
'Your employee is allowed to take his full sick leave allowance at the beginning of the sick leave cycle – that is, it's not pro-rated over a period of time,' says the Lab... ››› more
Our labour experts get a lot of questions regarding labour issues.
One question that keeps coming up is whether or not there's a difference between CCMA conciliation and arbitration.
The short answer to this question is 'yes'.
Keep reading as we explain how CCMA conciliation and arbitration differ so you can handle the process of dispute resolution effectively and lawfully.
Yes, the... ››› more
One of the first steps in your health and safety audit process is gathering all the information you need to assess your system. There are two ways to start this process... 1) Asking your employees questions around following your health and safety processes.
2) Asking your managers the processes they follow to ensure they're following the right health and safety procedures.
Here are four questi... ››› more
You may think your only option is to close down the company that isn't making a profit. But don't be too hasty with your decision.
There's an escape hatch you can use to save your company and pay less tax. ************* Advertisement *************
Breaking news: There's a 33% chance SARS' assessment of your tax return is wrong!
And most mistakes made by SARS on assessments are to your ... ››› more
Here's a true story with a happy ending:
I had coffee with Peter Franck, Contributor of the Practical VAT Handbook, and he told me an interesting story about one of his clients, Mr Hogenboezem*. He received a VAT assessment for R86 000 from SARS. SARS issued him with this assessment because he mistakenly claimed input tax twice on a bakkie and the invoices he received for purchases were techni... ››› more
Most managers have a natural inclination not to deal with conflict in the workplace. After all, it's easier to ignore something in the hope that it'll go away. It normally doesn't. Employees can stew over issues for months. Here are the consequences of unresolved conflict in the workplace.
According to the Practical Guide to Human Resources Management, there are many sources of workplace confli... ››› more
You probably know that if your company's erecting scaffolding it must comply with construction regulations. But do you know what the law says about the type of training required to erect a scaffold? Read on to find out....
If you're not sure of what the law says about training that's needed to erect a scaffold, the Health & Safety Advisor has got you covered.
Here's what the law says about... ››› more
When it comes time to hand in your tax return, SARS wants you to prove certain details with supporting documents.
A great example of this is a logbook. You'll use this to prove the deductions you want to claim for your business travel expenses. This is an important deduction for most business owners as rushing to all those client meetings can really add up.
Luckily, it's easy to create an a... ››› more
Over the past few weeks, the Health & Safety helpdesk has received a lot of questions about registering with the Compensation for Occupational Injuries and Diseases Act (COID).
What is Compensation for Occupational Injuries and Diseases ?...
COID is a government body that compensates workers who've been injured at work or who have contracted an illness or disease at work.
COID is there ... ››› more
I'm sure you know the best potential employees prepare for an interview. They study, they research and they rehearse. They think about what they can say to make you hire them over anyone else.
But what about you?
Do you make sure you're prepared to ask the right questions? Do you get the right information from the candidate to make sure he can do the job? If not, you could be hiring the wr... ››› more
You must deal with the retrenchment process properly.
The nature of this dismissal makes things tough for you from the start.
There's bound to be some resistance when you dismiss employees for operational reasons and not because they've done something wrong. Your employees and their representatives will scrutinise your every move and WILL challenge you if they believe you're... ››› more
Does your employee owe you money? Have you tried to get him to pay you back of his own accord with no luck? Find out the five legal requirements you must comply with before you deduct the amount from his salary.
In terms of the Basic Conditions of Employment Act (BCEA), there are standard deductions you're allowed to make from your employees' salary. For example, you can deduct tax from an empl... ››› more
You employees need to know what's allowed and what isn't when it comes to leave. If you don't make this clear, they'll simply plead ignorance and your business will suffer irreparable damage. The damage includes lost productivity and annual leave abuse. Don't let your company suffer. Make sure you have a legally sound annual leave policy that includes the following eight points...
If you want t... ››› more
If you run a registered company or a close corporation, you have a legal obligation to prepare financial statements. And you have to present your financial statements to SARS.
If you don't prepare them correctly, you may declare incorrect income and incur penalties and fines from SARS. Or you could present a false picture to any person who relies on your financial statements to make business de... ››› more
Most annual leave policies are largely made up of legal annual leave entitlements. But their structure of can change from business to business. Because of this, most annual leave policies neglect to include ONE very important part. Read on to make sure your annual leave policy doesn't have a big hole in it.
All your annual leave questions answered!
... ››› more
You know you need to conduct health and safety audits regularly. They help you identify the key problems in your Health and Safety System, check you're compliant and helps you prevent problems before they happen.
Before you start your audit, you need to draft a schedule to plan how you're going to approach your audit.
Attention! Heal... ››› more
We all like to think the working environment we create for our employees is a positive one. But in the high-stress environment that seems an inevitable part of the modern working world, some employees may find themselves in circumstances that they simply can't tolerate. And they'll resign to escape. When they do, you're at risk of claims of a constructive dismissal... If your employee's claims are... ››› more
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