Untitled

Where can I use my Little LogBook GO?

Little LogBook GO can be used anywhere in the world, subject to the country edition purchased. Get your Little LogBook GO at Waltons Africa stores. DETAILS - goo.gl/uJpCI3

Untitled

Register for the product demo and learn how you can save time and money! www.littlelogbooksales.co.za 

Tax: As the deadline draws nearer

The South African Revenue Services (SARS) says 3.8 million South Africans had already submitted their tax returns by Tuesday.

"Of those, just over two million returns were completed via eFiling and over 1.8m completed electronically at a Sars branch," spokesperson Marika Muller said in a statement.

As the 2014 tax season draws nearer, there is a rush by tax payers to beat the deadline - 21 November 2014.

With the tax season rush, we are reminded of the adage: The early bird catches the worm.

Have you filed your returns? You have exactly two days left! #TaxCompliance

Find out how we can help http://goo.gl/GjHbS7

Crackdown on Tax Non Compliance!

The South African Revenue Service (SARS) is fighting Tax Non Compliance! SARS is fighting tax crime on many fronts. This is revealed in their In April 2012 Compliance Programme.

In this compliance programme, SARS announced seven priority areas they will be targeting in order to improve compliance, these are:

- Wealthy South Africans and their Trusts.
- Large Businesses and Transfer Pricing.
- Construction sector : Government Tenders.
- Illicit cigarettes.
- Clothing and textiles : Undervalued imports.
-Tax Practitioners and the need to improve their own trade compliance.
- Small business where we SARS need to reduce the cost of compliance.
http://goo.gl/GjHbS7

If you do not submit your tax return by the deadline (21 November 2014), SARS may impose a PENALTY on you. Are you willing to take that risk?

Find out how we can help http://goo.gl/GjHbS7  

Tel: +27 (0)11 05 00 999
Fax: +27 (0)11 678 4276
Email: sales@littlelogbook.net
www.littlelogbook.net

Generate tax compliant reports

Generate reports with Little LogBook's powerful software.
www.littlelogbook.net

When is the 2014 Tax Season Deadline?

We all know that dreaded feeling that comes about with the beginning of Tax season. Most of us tend to put off having to fill out our tax returns until the very last opportunity we have, thereby thinking we have given ourselves some more time to deal with the feeling of complete boredom that seems to come with it, and allowing ourselves to find all the information we actually need to fill in the forms effectively.

With the tax season now coming to an end however, everyone will need to finalize all of their plans and get the work done in order to get their returns in on time without having to pay unnecessary penalty fees.

The South African Tax season as dictated by SARS has been set to start at the beginning of July 2014, and will run until January 30, depending on your Taxpayer status, the type of return you are filing, and your tax bracket or business status. If you are planning on filing via SARS’s e-Filing system, you will have until 21 November to get your return filed.

Anyone who falls under the ‘Provisional Taxpayer’ bracket, which consists of individuals who receive remuneration under a certain amount per annum, have until January 30th to file. Anyone looking to file a physical return, who is considered a regular tax payer within the regular bracket should have their return filed with SARS before Friday September 26th.

 A return of Income should be filed for companies (closed corporations, etc) within 12 months from the end of the financial year (which 2014 ended on the 28th of February. It is important to note for anyone filing a return that SARS has recently increased stringency on late returns, meaning that you will be fined more if you do not submit the return on time. Anyone who earns under R250 000 per annum and does not have any other expenses to declare also does not have to file a return, unless they want to claim for certain expenses, such as car allowances, medical aid and rental income.

What Is Carbon Tax?

 

In the early 1990s, the first tax on carbon emissions was introduced in European countries in an effort to try cut down on the damage done by greenhouse gas emissions as by-products of our industrial production. This tax, which takes different forms in countries around the world, is aimed at addressing the damage done by the use of fossil fuels, hoping to make the consumers and producers of such fuels rethink their habits and reduce overall emissions and thereby cut down on the environmental damage done over time.

While Carbon Tax laws can be quite harmful towards the least advantaged members of society and those whose earnings do not necessarily justify having to pay the same amount on a fuel tax than those of higher pay scales, many countries and legislations have attempted to offset this by using the funds gained by taxation in order to help improve the situation of the least advantaged.

A proposed Carbon Tax in South Africa was set to be rolled out in 2010, but a difficult global economic climate made its implementation difficult, and it was postponed. Now set to be rolled out in 2016 due to the increased instability of the local industries caused by unionized striking and slow economic growth. Studies have shown that South Africa is in the top 20 countries in the world when it comes to those considered most active in their efforts to decrease impact on the environment. The proposed tax in South Africa is expected to be phased in slowly, and is only one of many environmental efforts being introduced into the country, such as the biofuel production incentive and plans to increase the current vehicle emissions tax.

One of the biggest problems facing the implementation of carbon taxes worldwide is the opposition being raised by those countries and private corporations who benefit from the consumption of high amounts of carbon. The USA, China and Australia, for example, have been slow and somewhat unwilling to implement the tax since it would substantially affect their economic growth.

How does e-filing work?

It’s the tax season again and millions of South Africans are getting their affairs in order to submit their tax returns. For the past few years, a lot of focus has fallen on e-filing – SARS’s electronic tax filing system. But how does it work?

Firstly, let’s look at why you should rather use the e-filing service as opposed to going into a SARS branch and manually submitting your tax returns.

One of the most obvious benefits are that you can submit your tax returns from the comfort and convenience of your own home. No more waiting in queues, driving around the block three times to find a parking spot or taking off from work to go to the SARS offices. Once you’ve registered on e-filing, you can submit returns, view your tax status and make payments to SARS electronically – 24 hours a day and 7 days a week!

Let’s see how it works. First you need to have a computer, access to the internet and a working email address. Make sure you have the needed Adobe Flash player version installed (version 10.3.0 and upwards) as well as Adobe Reader (version 9 and upwards). Before you can proceed, you need to register on the e-filing system. In order to register, you need your income tax registration number, identity number and bank account details. Visit www.sarsefiling.co.za, click on the “Register” link and follow the online instructions. After registering and logging in, you will be able to view your ITR12 form. Upon opening this form, you will receive a message saying that a return has been generated for you using the latest IRP5 information that SARS received from your employer.

You are now ready to create your electronic return. The first page is a questionnaire with the purpose to filter through all possible tax return options to see which are relevant to you. After completing the questionnaire, click on “Generate form” to generate the form with your required fields. Although you don’t need to submit any supporting documents with your income tax return, you need the information on those documents. These documents include:  your bank account details, IRP5 certificate (from your employer), financial statements that reflect any business income you earned, information relating to any capital gains you may have made, documents relating to medical expenditure, travel allowance details and any other documentation relating to income that must be declared or deductions you want to claim.

Check that your personal details and salary details are correct. If you have an investment income, be sure to declare that here. Also fill in any taxable capital gains you may have made during the tax year. If you have any other form of income, be sure to declare that. If not, skip this section.

Next you need to record your annual medical expenses. This is specifically for medical expenses that you did not recover from a medical scheme.

If you’ve contributed to a retirement annuity, state so in the online questionnaire under the section headed “Retirement and income protection contributions” – even if you’ve done so through an employer.

The next step is to claim your work-related travel expenses against an allowance. If you receive a travel allowance from your employer, the allowance paid to you should be recorded in the income section of your income tax return.

The last step in this part of e-filing is to claim any other deductions, which could include the following: claim against a subsistence allowance you receive for travelling for business purposes; donations made to an approved public benefit organisation; depreciation of assets and home office expenses.

Next you can view a preliminary assessment report on the possible outcome of your return. Click “save return” and then use the “tax calculator” button which will give you an idea of whether you still owe SARS money or whether you will receive money back.

The very last step is to submit your tax return before the deadline, by clicking on the “File” button. Once you’ve submitted your tax return, SARS will assess it and you will receive a Notice of Assessment, which will state what you owe SARS (or vice versa).

The biggest benefit of making use of e-filing, is that you will receive your assessment result within 48 hours – assuming you completed it honestly and correctly. SARS might ask to view your supporting documentation, so be sure to keep those records for up to 5 years.

Do you use e-filing, let us know?

How to register a company in South Africa

Anyone who has ever started a company knows that there is much more to it than simply getting a product and a catchy name and proceeding to make money. Before you can start doing anything productive, you will have to register your company as such. The process that goes into this, however, is not as simple as just sending in an application. The following is a basic step-by-step guide showing what needs to be done in order to successfully register a business in South Africa:

1.     Prepare and certify documentation

Before you are able to register your company, no matter what type you have chosen to pursue, you will need to consult an attorney who is legally allowed to submit formation documentation. All documentation must be certified and submitted either by an attorney or an attorney’s clerk on your behalf.

2.     Register and pay for the reservation of a name

In order to register a company name, you will have to submit a list of three to five preferred names to the CIPC. The list will then be checked against existing names, and once one is approved (the one ranked highest on your list, if available, will be assigned), it will be reserved for you for two months, subject to payment of all fees beforehand. During these two months you will need to have your business incorporated, or lose the name reservation.

3.     Lodge formation documentation for registration

This step can only take place once a name has been reserved, all documentation relevant to the particular type of business and holding has been submitted, and fees have been payed. The Registrar will then issue a registration number, certificate of incorporation, a certificate to commence business and various other forms which will be used to prove the validity of the business’s status.

4.     Open a bank account

In order to set up an official company bank account, you will need to submit certified copies of all of the above mentioned forms to the bank of your choice, potentially along with other documentation, such as a business plan, statement of purpose, etc., if you are applying for finance through the banking institution.

5.     Register with all other relevant offices

Before you can start hiring employees and trading as an official company, you will need to register your company at your local branch of SARS, so that you and your employees will be covered for the various types of tax involved in the running of your business. You will also need to register at the Department of Labour for Unemployment Insurance and compensation for occupational injuries and diseases.

Income Tax brackets in South Africa

The tax season has opened and there are millions of new tax payers asking questions about how it works and what it means.

Tax brackets are in place to indicate the percentage of your income contributable to SARS according to your income.

The tax brackets in South Africa look as follows:

Taxable income (R) (Annually)	Rates of tax (R)
0 – 174 550	18% of each R1
174 551 – 272 700	31 419 + 25% of the amount above 174550
272 701 – 377 450	55 957 + 30% of the amount above 272 700
377 451 - 528 000	87 382 + 35% of the amount above 377 450
528 001 - 673 100	140 074 + 38% of the amount above 528 000
673 101 and above	195 212 + 40% of the amount above 673 100

 

Make sure you are certain of which tax bracket you fall under before submitting your tax returns this season.

What do you think the average tax income of South Africa is?

10 Tips to help you avoid hijackings

South Africa is regarded as one of the countries in the world where the most hijackings per capita take place every year. While most of us probably feel quite safe at home (given that we take precautions such as having cameras, alarms and electric fencing installed in our homes, that doesn't mean that we should stop being aware of the dangers that face us. Here are a few tips on how to keep yourself and your family safe from falling victim to a hijacking:

 

•   Make a mental note of any police stations in the vicinity.

 

•   When stopping behind another vehicle, leave half a vehicle length in front of your vehicle to make an emergency escape if necessary.

 

•   Check rear-view mirror to ensure you are not being followed.

 

•   Be extra alert when you get around 2km away from your house. Switch off the car radio and concentrate on your surroundings as you approach your home. If you have noticed any vehicle behind you, drive at a normal speed to the nearest police station or a busy public area.

 

•   Remember to stop your vehicle just on the inside of the gate and select reverse whilst waiting for the gate to close. This creates confusion for anyone who may be watching, and may buy you a few seconds for the gate to close completely behind you.

 

•   Check your driveway and street before you leave or enter your premises.

 

•   Make sure your driveway is well lit and clear from shrubbery where perpetrators can hide.

 

•   Be aware of unknown pedestrians close to your residential address –do not turn into your driveway –pass and go back later.

 

•   Be aware of vehicles parked close to your address with occupants inside. It might be perpetrators observing the area.

 

•   Phone your home and ask for someone to make sure your driveway is safe and to open and close the gate for you.

 

•   When returning home after dark, ensure that an outside light is on, or have someone meet you at the gate. Check with your armed response company if they are rendering rendezvous services.

 

Have you ever been Hijacked? Tell us in the comment section.

How SARS Logbooks solve your biggest problems

Anyone who has had to fill in a tax return knows that if you don’t have everything in order, you’re going to be in for a very difficult process of trying to find receipts, remembering where your information is, and trying to recall exactly what happened over the past year. With SARS recently clamping down on estimated entries, and changing their evaluations to make it necessary to be as precise as possible in order to avoid paying penalties, the worst thing you can do when it comes to your tax return is to leave out any information, or worse yet, misrepresent it.

 

There are, however, alternative ways that will allow you to keep your information in order, not only allowing you to keep it close at hand for when you need to collect it for your return, but some will even help you out by arranging and keeping track of the information for you!

 

When it comes to vehicle and travel allowances, which are among the most common tax deductions, but they are also the most difficult to stay on top of if you don’t know what you’re doing from the beginning. If you receive a travel or vehicle allowance, you are required to keep a detailed log of all your trips in your particular vehicle, including personal and business related trips. This means that every time you get into your car, you will need to keep track of how far you travel, what the trip is for, and where you’re going. This seems like a lot of work, and it really is, unless you get into a routine of doing it on a daily basis. However, there are products on the market that will allow you to skip this entirely tedious task, and will not only be a time saver, but will likely be more accurate and detailed than you can be (even on your best day!).

  

The Little Logbook GPS trip logger allows you to take to the road without manually tracking your trip. Simply keep the logger in your car, keep it powered on using the USB connector, and your entire trip will be tracked via advanced GPS technology. You will be able to review the data on your computer, and even add details such as the names of the places you visit most often, the reasons for your visit, all of which will make it easier for you once tax season comes around.

 

With the Little Logbook, you no longer have to worry about remembering where you’ve been, or even where your staff have been (since it is also used very effectively by fleet managers to keep track of their drivers’activities). Simply plug it in and you will never miss a trip again. Missing trip information or looking for the most efficient route for your drivers to take to their destinations? All of this can be drawn from the information collected automatically by the Little Logbook device, so everything you have to worry about when driving is taken care of for you. All you need to do is drive. With GPS loggers, doing your taxes has become just that much easier, and by using them you will probably find yourself saving much needed time and money.

For more information on saving on tax please visit our website at Little LogBook 

5 Easy tax saving tips for small businesses

With the  global economy just now recovering from a scary position over the last few years, most small businesses in South Africa are in a very difficult position. Since small businesses fail at a higher rate than most other businesses, it is important for business owners to make good decisions when it comes to saving money and cutting costs. One of the most effective ways of doing that is to make savings count on your tax returns. Here are a few easy tax saving tips that you can implement in your small business:

1.     Home office

 Having a dedicated space in your house designated solely for the purpose of running your business is one of the easiest ways to get a break on your tax. Not only does it give you an affordable cut on your return, but also gives you a place to do your work from when you’re not at the office; and lets face it, we all enjoy being away from the office sometimes. You will need to set out the space clearly though, since you cannot claim a return on a space in your home if it just happens to have a computer in it.



2. Office supplies

Even if you don't take the home-office deduction, you can deduct the business supplies you buy. Hang onto those receipts, because these expenditures will offset your taxable business income. Supplies such as printer cartridges and toner, as well as printers, bigger office machinery and even computer equipment, can also be claimed for, so make sure to keep a list of everything you bought, even if it was bought out of your own pocket.


 3. Meals and entertainment

General tax law states that any business expense can be deducted from income if that expense was incurred in the process of generating income (any income not capital in nature). This means that any lunch or coffee expenses you incur while entertaining potential clients, going on lunch meetings and brainstorms with your sales team, can all be deducted from your tax return as a business entertainment expense.


4. Travel expenses

Much like the entertainment deduction, any travel costs incurred in the process of generating income can be deducted (at different levels, depending on the type, duration and extent of the travel) as a legitimate expense. Not only fuel, but also flights and accommodation can be deducted, so be sure to keep track of all your travel logs, fuel costs and the expenses incurred at your place of accommodation. Travel expenses such as daily travel can also be deducted, and are perhaps the most common. Using an electronic trip logger such as the Little Logbook, which uses GPS coordinates to automatically record your entire trip will allow you to keep an incredibly accurate account of where you’ve been, and which of your trips were business related.


5. Educational costs


Small business owners can deduct employee's educational expenses if the courses apply to their job, and self-employed business owners can write off some of their own educational expenses. Transportation to and from the classes may also be deductible.


If you would like to purchase a Log Book for your business travel expenses please visit our website at : http://littlelogbook.net/

How can I deduct my home office expenses from my tax return?

As someone working from home, I find myself often taking more than the necessary steps to make my home office as comfortable as I can since, well, it’s mine. Anyone who works from home who has an old office to compare it to will tell you that their personal space is usually kitted out much more than the cubicle they used to share with that one guy who never knew how to keep his stuff off their desk. Because we tend to spend our own hard earned money making our home offices as comfortable and suitable for productivity as possible (and yes, having a video game system set up in your office DOES hinder productivity), it sometimes feels like we might be getting the short end of the stick.

I know that many of us home office guys (and girls) often think “if my company can deduct ‘office expenses’ from their taxes, why can’t I?”, but many of us didn’t even know that this was possible. The thing about it is, however, that there are limitations on what you can and can’t apply to have deducted from your tax return, depending on the state of your home office, your reasons for working from home, the type of job you do, etc.

For instance, if you are employed by someone other than yourself, and that person/company allows you (and deems it suitable and convenient that you do in fact work from home) to work from home, you will be able to deduct your home office expenses (including rent - for the portion of your home dedicated to work -, equipment, repairs and utilities) from your taxes at the end of the year. Remember, you will need to calculate exactly how much space is used as an office. For instance, if your office takes up 20% of your home, then only 20% of the rent, utilities and other expenses will be tax deductible.

Another thing to note is that the amount of things you can subtract relies heavily on your remuneration structure. If more than 50% of your income is commission based, you will be able to deduct more than if your full remuneration comes in the form of a salary or wage. You can only deduct tax from your home office if that office is used EXCLUSIVELY for work, and having a home office must be your only option for work. Having a desk available at the company office but simply choosing not to go in does not qualify you for tax deductions in this regard (as much as I have tried to convince my boss that it still counts anyway!).

Driving around to see clients? Keep a detailed logbook so that you can claim from SARS and save some money to spend on your home office. Little LogBook can log all your trips for tax purposes electronically. Visit our website to acquire your Little LogBook

If you’re in doubt regarding how much you are able to deduct considering your own situation, try consulting an expert or tax consultant who will be able to give you a more in depth breakdown of what exactly can be done about it. But until then, don’t let anyone know that you also secretly use your office as a hiding spot to get out of doing the work your spouse asked you to do!