Warning: Creating default object from empty value in /home/meredithharingto/public_html/components/com_sh404sef/shInit.php on line 37
Warning: Cannot modify header information - headers already sent by (output started at /home/meredithharingto/public_html/components/com_sh404sef/shInit.php:37) in /home/meredithharingto/public_html/templates/ja_purity/ja_templatetools.php on line 44 Meredith Harington FAQ's
Warning: Creating default object from empty value in /home/meredithharingto/public_html/components/com_jefaqpro/views/category/view.html.php on line 120
Meredith Harington FAQ's
WHAT ARE THE TAX RATES FOR A SMALL BUSINESS CORPORATION?
A Small Business Corporation is a company or close corporation with turnover below R20 million and where the director/s or member/s are not a director or member of any other entity. SBC's attract favourable tax rates too. For more information visit: www.sars.gov.za
HOW DO I SUBMIT SUPPORTING DOCUMENTATION TO SARS VIA EFILING?
SARS is looking to make our lives more simple - watch their video for more assistance.
HOW DO I SUBMIT MY ITR12 VIA SARS EFILING?
That's easy - SARS has put out a video to help with this one.
HOW CAN I PROTECT MYSELF AGAINST EXPENSIVE PROFESSIONAL FEES ARISING FROM SARS AUDITS?
It is likelier than ever before that you or your business can be investigated by SARS. Should this occur, your accountants will have to provide the relevant information and liaise with SARS and this will incur additional professional fees. These fees often have no bearing on the amount of tax demanded and even if there were no additional taxes to pay you would still be liable for these fees.
Specialised insurance consultants offer a tax enquiry fee cover. This will cover the additional accountant fees in the defence of an enquiry from SARS. Please contact us for more information regarding this service or click here.
WHAT CAN I DO TO REDUCE MY AUDIT AND ACCOUNTING COSTS?
First of all it is very important to use a proper accounting system and make sure that all the information is properly recorded, reconciled and up to date. Accounting corrections that have to be made by the audit team always result in an expensive, unexpected surprise for the client. It is very important that all accounting information is not just captured in the accounting records but also reconciled on a frequent basis. Wherever possible a clients assistance in preparing reconciliations and schedules for an audit always saves time and costs. Examples of these include, VAT, Bank and Payroll reconciliations.
Click here for a full explanation of our fee and billing structure.
SHOULD I OR SHOULD I NOT DISPENSE WITH AN AUDIT?
Click here to read our full article on this topic.
HOW MUCH SHOULD I BUDGET FOR ADMINISTRATION COSTS?
Click here to read our full article on this topic.
HOW DO I REGISTER MYSELF ON SARS E-FILING?
SARS has made it very simple, click here to watch the video.
I FEEL THAT I NEED ACCOUNTING ASSISTANCE, BUT I DON’T KNOW HOW IT WORKS OR WHETHER I CAN AFFORD IT
So, I am a start up business and I know that I am supposed to keep accurate accounting records, submit VAT returns, deduct and pay over PAYE. I want to do things properly, but finance and accounting was never my strong point.
Do I look to hire a bookkeeper? Problem is, I don’t know enough to tell if he or she is doing the job properly! How do I supervise an area about which I know very little?
One of your options is to outsource the entire function to Meredith Harington. We can provide the complete range of monthly accounting and reporting services, prepare your VAT returns, prepare your payroll each month, along with pay slips, and submit the monthly PAYE returns. You have the comfort of knowing this work is being done under the supervision and control of Chartered Accountants. You are also only paying for the time we are working on your records, rather than having to employ a full time staff member who could be under-utilised.
And then, when your business grows from strength to strength, as it will do when your financial controls are strong, you may then be in a position to hire your own accounting and administrative staff. At Meredith Harington we do not see this as losing business – we see this as success because we have helped your business stand on its own two feet! You also need not worry about the quality of the staff you now employ. We can help you during the recruitment process. Furthermore, we will act as the "part-time financial manager" by reviewing the work of your new staff until we are all comfortable that the job is being done properly.
It really does not matter what size your business is or which phase it is in. We can tailor our offering to suit your business needs and requirements in way that is flexible and cost efficient.
WHAT SHOULD I BE REVIEWING, ON A REGULAR BASIS, IN ORDER TO SAVE ON ESTATE DUTY?
Estate planning should not be seen as a once-off exercise, to be completed then "filed away" as done. It is an on-going process and there are things that you should be doing (or at least considering) on an annual basis. Some of things you should be considering:
Are the assets in your estate (as a married couple) worth more than 7 million rand and/or is it likely that they will be in the future?
Are you taking advantage of the R 100 000 donation you can make each year free from donations tax. Effectively a married couple can reduce the value of their estate by R 200 000 per annum.
In making the donations above, both spouses can donate growth assets without attracting capital gains tax as long as the capital gain attaching to the asset donated does not exceed R 30 000 per annum per taxpayer. In this way, not only is Estate Duty minimised, but future capital gains are reduced as this action increases the base cost of the growth assets held
Revise your will, especially if your personal or financial circumstances have changed during the year
HOW LONG DO I NEED TO RETAIN RECORDS FOR?
Books of prime entry: Cashbooks, creditors ledgers, debtors ledgers, fixed asset registers, general ledger journals, petty cash books, purchase journals, sales journals, subsidiary journals and ledgers - as well as supporting schedules to such books of account - Original - 15 years, Microfiche - 5 years.
Vouchers, working papers, bank statements, costing records, creditors invoices and statements, debtors invoices and statements, goods received notes, journal vouchers, payrolls, purchas orders and invoices, railage documents, salary and wage registers, sales tax records, tax returns and assessments - 5 years.
Employee records: Expense accounts, payrolls, employee tax returns - 5 years. Accident records, apprentice records, industrial training records, staff records - 3 years.
Statutory and share registration records: Annual returns, certificate of change of name, Incorporation, to commence business, Founding Statements Memorandum and Articles of Association, minute books, notice of meetings - Indefinitely. Branch registers, registers of directors attendance, debenture holders, directors and officers, directors' interests, members and pledges and bonds and cancelled share transfer forms - 12 years.
HOW IS PROVISIONAL TAX CALCULATED?
First and second period provisonal tax is calculated using your last assessed income as the basic amount on which to calculate your tax liability. SARS have also introduced an 8% increase per annum from last assessed income to current provisional tax, eg. if last assessed income was for the 2011 tax year and you are now calculating 2013 provisional tax, the increase will be 16%.
For February year-ends the first period provisonal tax will be payable by 31 August and second period by 28 February.
For second period provisional tax payment, if a taxpayer’s taxable income is in excess of R1 million, they cannot use the last assessed income but have to accurately estimate their taxable income before 28 February or at their relevant year-end each year and have to be within 80% of their actual taxable income to avoid a 20% penalty for underestimation. All relevant calculations must be kept as proof.
If a taxpayer’s taxable income is less than R1 million and he submits an estimate lower than the basic amount, ie. last assessed income plus increase, and it is not within 90% of his actual taxable income, SARS will also levy a 20% penalty for underestimation.