Updating employee handbook
This is a common business expense and forms part of the cost of running your business... Remember to claim your input tax credit on these monthly premiums, BUT if you ever get paid out on your policy, bear in mind that because you’ve claimed an input tax credit on your premiums, you must account to SARS for output tax on the payout.
Your tax invoice is the equivalent of the IRP 5 for your income tax – if you want to claim an input tax credit, you need a tax invoice. Do you know whether the vehicle you have bought is allowable as a deduction? Please look at the ❐ Fringe benefits: Have you paid the tax on your company cars?
Queries to SARS inevitably end up in vague answers – with no help offered!
Vat is a self-assessment system, which means that you must calculate whether you are liable to pay to SARS or receive from SARS.
❐ Are you claiming all the Vat inputs on your debit order payments?
❐ Bad debts ❐ Cancellation of Vat registration – this can give rise to an output tax liability on the remaining stock or assets ❐ Leases and rentals – the time of supply is often wrong ❐ Quotes – are you issuing Vat inclusive quotes?