South Africa News

SARS tax warning

Published

3 years ago

August 30, 2021

The South African Revenue Service recently published an update on claiming home office expenses, warning taxpayers against applying the tax deduction without considering the full implications. Its advice on the issue comes after a full tax year where many employees were required to work from home.

SARS Commissioner Edward Kieswetter said that there are long-term implications of defining an area in your primary residence as a home office for tax purposes. It may be more prudent to wait and establish a more sustainable rhythm before making the decision,” Kieswetter said.

He also warned that SARS flagged many tax returns that included home office claims for verification. We really want to caution taxpayers to correctly and truthfully complete their returns, as [dishonest] behaviour will be detected,” said Kieswetter.

In its update regarding home office expenses, SARS warned that defining part of a primary residence as a home office will most likely negatively impact capital gains tax calculations in the future. Primary residences enjoy a R2 million exemption from capital gains tax, known as the primary residence exclusion.

However, the home office area is excluded from the R2 million exemption on a pro-rated basis. SARS said that taxpayers should weigh the potential costs of deducting home office expenses against the benefits.

“Taxpayers may also find that working from home led to savings on expenses they would otherwise have incurred, like transport, wear and tear on vehicles and so forth,” SARS stated. Taken together with the loss of part of the of the capital gains exclusion, these savings may outweigh the benefit of a claim for home office expenses,” it said.

SARS also warned that there was a high likelihood that a taxpayer who claimed home office expenses for the first time would be selected for verification or audit.
To find out if SARS is trying to scare taxpayers away from claiming the home office benefit, MyBroadband spoke to Andreana Osche of Anco Integrated Financial Services.

Osche said it was fair to make the taxpayer aware of the trade-offs of claiming home office expenses.

She also agreed with SARS that it is necessary to calculate whether the potential increase in capital gains tax is worth it.

However, Osche said that for most people, the impact to the capital gains on their primary residence from claiming home office expenses would be negligible.

Claiming home office expenses is not trivial, though, and does require diligence on the taxpayer’s part.

First, you must accurately measure your work area, then calculate the ratio of your work area compared to the total area of your home.

You can then deduct several expenses from your tax according to that ratio. Some examples of expenses you can deduct are:

Bond interest and insurance, or rentals
Utilities — electricity and water
Cleaning
Wages
Security
Osche said that the following costs might be deducted according to the percentages allowed by SARS, depending on whether the expense was incurred for business purposes:

Depreciation — the rate is determined by SARS, then claim 100% of that
Stationery — 100%
Repairs and maintenance, study assets — 100%
Assistant’s fees
Wi-Fi and computer expenses — usually 75% to 100%
Cellphone and telephone — usually 75% – 100%
Taxpayers must compile accurate schedules and provide all slips and vouchers if audited.

Importantly, Osche said that if the taxpayer is an employee, they must have a letter from their employer confirming that they will be required to work from home.

For your work area to qualify for home office deductions, the following should be noted:

An office, appropriately equipped, must have been set up at the place of primary residence.
You must have used the office regularly and exclusively for work purposes.
You must have used the office for more than 50% of your duties or, if you earn more than 50% of your remuneration from commission or other variable payments based on work performance, more than 50% of your duties must have been performed away from the employer’s office.
Any home office expenses must be linked to employment use and must be verifiable.
You must claim home office expenses against source code 4028 in the income tax return.

Source: News365

In other news – Bring back Somizi – Idols SA told

South Africans have taken to social media to express displeasure at the absence of Somizi Mhlongo on Idols SA season 17, episode 8.

On Sunday evening, Unathi and Randall Abrahams were the only judges on the show, including guest judge Lady Du. Learn more

Related Topics:Edward Kieswetter SARS tax warning

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South Africa News

Manchester City 0-0 Arsenal

Published

3 weeks ago

March 31, 2024

Addie K

Manchester City 0-0 Arsenal. Manchester City and Arsenal handed Liverpool the advantage in the Premier League title race as they played out a bitterly disappointing goalless stalemate at Etihad Stadium.

Liverpool are now top of the table and two points clear of Arsenal after they came from behind to beat Brighton at Anfield, their delight increased by their two closest rivals cancelling each other out.

This was a game that made a nonsense of its billing as a potential classic, as Arsenal’s containing tactics snuffed out City while the Gunners had only limited chances of their own in a desperately poor affair.

Nathan Ake had an early close-range header saved by Arsenal keeper David Raya before going off injured while former City striker Gabriel Jesus posed an occasional threat, just failing to connect with Bukayo Saka’s cross inches from goal after the break.

Arsenal manager Mikel Arteta will be happier than City counterpart Pep Guardiola with this outcome – but the real winners were Jurgen Klopp and Liverpool.

Guardiola’s side were under greater pressure to win this match but their usual fluent passing game was rarely in evidence, stifled by the visitors’ organisation and infuriated by referee Anthony Taylor’s reluctance to punish the Gunners for a succession of infringements.

It led to a scrappy, disjointed game in which City were never allowed to gather their usual momentum and rhythm, with even the best efforts of master creators Kevin de Bruyne and Bernardo Silva unable to carve out meaningful opportunities for Erling Haaland, who was kept on the margins throughout.

The hosts held sway in possession for most of the second half but it was illustrative of the game that Raya barely had an anxious moment, his counterpart Stefan Ortega also idle for long periods.

Indeed, it is the first time City have failed to score at home in the Premier League since October 2021, a run of 47 games.

The reigning champions, as usual, will remain confident of retaining their title but Guardiola will be bitterly disappointed at his side’s failure to trouble Arsenal, with substitute Jack Grealish on the end of some lengthy post-match advice from his manager.

City are back here at Etihad Stadium to face in-form Aston Villa on Wednesday night knowing they cannot afford any more slip-ups in this tight Premier League title pursuit.

Arsenal arrived at Manchester City with a point to make and a chance to show their improvement at a ground where they have had a miserable record in the past.

The Gunners last won here in January 2015, drawing one and losing eight of their subsequent nine visits before this game.

Here, Arteta set his side out to be fiercely drilled and well-organised to frustrate, a strategy seemingly designed to earn the point they secured rather than risk more for victory.

It was a conservative approach but what it did demonstrate was that Arsenal do have more resilience and character than on previous occasions, when they have sometimes capitulated under City’s attacking assault.

Arteta’s side were composed but also willing to throw bodies on the line when danger threatened, not that they were ever in serious peril of conceding – a tribute to their display in itself.

They have kept clean sheets in both games against Manchester City this season, making them only the fourth team to shut out a Guardiola side twice in the same season.

Whether this is one point gained or two lost remains to be seen, but Arteta seemed satisfied enough at the final whistle.

source – BBC

South Africa News

A Comprehensive launch of New South African Online Casino Portal

Published

4 weeks ago

March 22, 2024

Addie K

Johannesburg, South Africa – In an exciting development for South African online casino enthusiasts, the much-anticipated launch of GamblingSA.co.za marks a significant milestone in the evolution of online gambling in South Africa. Managed by industry veteran Rachel Williams, who brings over 18 years of experience to the table, this comprehensive portal promises to revolutionize the way South African players engage with online casinos.

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GamblingSA.co.za sets a new standard in the online gambling industry with its commitment to providing South African players with the most reliable and up-to-date information on online casinos. Understanding the unique needs of the local market, Williams and her team have curated a platform that prioritizes the preferences of South African players, from offering the ability to play in ZAR to ensuring the ease of deposits and withdrawals.

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At the heart of GamblingSA.co.za’s offering is its unbiased and thorough review method. “We examine online casinos with a fine-tooth comb to ensure they meet our strict criteria, which includes safe banking options, efficient customer service, fair bonus wagering requirements, and quality game selections,” explains Williams. “Our goal is to recommend only the best online casinos that allow our players to gamble with confidence and convenience.”

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For more information and to explore the world of online gambling in South Africa, visit GamblingSA.co.za.

About GamblingSA.co.za:

GamblingSA.co.za is South Africa’s premier online casino portal, offering comprehensive reviews, exclusive bonuses, and expert advice to South African online casino players. Managed by industry veteran Michelle Williams, the site is dedicated to enhancing the online gambling experience for players across South Africa, ensuring they have access to safe, reliable, and enjoyable online gambling options.

Contact Information:

Rachel Williams, Manager
GamblingSA.co.za

South Africa News

Corps members have been warned against traveling without obtaining permission

Published

2 months ago

February 22, 2024

Nancy M

Corps members have been warned against traveling without obtaining permission from the National Youth Service Corps, NYSC. The Director General of the NYSC, Brigadier General YD Ahmed says such act attracts punishment while addressing Corps members in Oyo and Ogun states orientation camp on Wednesday.

He said unauthorized journey attract sanctions, adding that no employer is allowed to grant permission to Corps members to travel.He informed the Corps members that all services in NYSC are free, warning that they should beware of online advertisers and fraudsters that may offer posting and redeployment to them for a fee.

The DG also implored the Corps members to adhere strictly to the NYSC dress code, adding that improper dressing in NYSC uniform attracts sanctions.

“Don’t dress anyhow. Dress as good ambassadors of NYSC and always abide by all NYSC rules and regulations,

“Respect the culture and tradition of your host communities when you leave camp. Make good impact on the communities and in your place of primary assignments”, the DG said.

He stated that efforts are still on-going towards the signing of the NYSC Trust Fund bill into law.

General Ahmed urged the Corps Members to participate actively in all the camp activities and also ensure that they establish long lasting friendship among themselves before leaving the Orientation Camp.

The Director General admonished them to avoid idleness but rather engage themselves with meaningful activities that will add value to them in addition to their certificates.

The NYSC Oyo State Coordinator, Mr Odoba Abel Oche, while presenting the Orientation Camp brief to the Director General, stated that the Corps members’ behaviour have been very commendable.

Similarly, the NYSC Ogun State Coordinator, Mrs Olayinka Nasamu, said a total of 2,350 Corps members have been registered. 1,318 for Ogun State and 1,032 for Lagos State.

“Ogun registered 496 male and 822 female while Lagos registered 414 male and 618 female”, Nasamu said.

Source: dailypost