,

WHY OUTSOURCE YOUR ACCOUNTING


Accounting is so much more than balancing your books and preparing your budget

Accurate, well-designed and up to date management accounting is at the root of many successful businesses. Such businesses avoid running out of cash because their assumed margins were not accurate.

The size of your business and employee responsibilities will determine how you are managing your accounts. Outsourcing your account management will relieve the pressure and stress that you may experience as a small business owner and add credibility to your brand as a whole.

Some benefits of outsourcing your accounting

  • Improved Accuracy

    Outsourcing accounting services and payroll outsourcing can be quite beneficial when it comes to generating accurate results that can be as high as 99.95%.  – InvensisIf there is one thing you want in business, it’s accuracy. Studies show that outsourcing this service can boost accuracy, which can add to your business reputation.

 

  • Never Miss a Payment

    In many businesses, employees take on a variety of responsibilities. Taking away the accounting tasks would eliminate the risk of late payments and invoicing when the main projects become overwhelming.Outsourcing your accounting will ensure that your bills are paid on time, and as a result, improve the relationships with your team and clients alike.

 

  • Access to the Best Software

    The market is constantly changing, and so is the technology used to manage accounts. An outsourced accounting service will be using only the best programs and software to get the job done. That means you won’t have to worry about buying more software or staying up to date in the field of accounting.

 

  • Advice and Insights from The Experts

    Make use of accounting consultants to provide assistance, help improve your profit margins and learn about how you can grow your business. These outsourced individuals are experts in their niche, so there is no better person to trust with the tasks at hand.

 

At Moneypenny we offer a range of accounting services, including, but not limited to:

  • Bookkeeping up to trial balance
  • Fixed asset register maintenance
  • Budget preparation
  • Cash flow management
  • Management accounting
  • Inventory management
  • Independent reviews

Talk to us about how we can assist with your business accounting needs.

,

2018 SARS Tax Returns – What You Need to Know

SARS Tax Returns

The 2018 SARS Tax Returns Season opened on 01 July 2018 and will close on 31 October 2018. SARS have released a new Service Charter which outlines taxpayers’ rights and responsibilities as well as the service standards that you can expect from the South African Revenue Service during the 2018 tax season.

Acting SARS commissioner Mark Kingon told media that the organisation have implemented measures that aim to improve the service delivery and efficiency of the revenue agency.

We can’t do it overnight,” he said. But the agency is making an effort to deliver good service to the public and to be a top notch organisation of State. “We want to do what is right. We take stock of how we can be more efficient.” said Kingon

During his address, Kingon pointed out a couple of key points that will assist the public to submit their income tax returns during the 2018 SARS Tax Returns season.

Push for E-Filing

Taxpayers are urged to consider e-filing over going into SARS branches. SARS have assessed what can be done to better the taxpayer experience and e-filing is one of the key factors where they wish to streamline the process for themselves, and for the taxpayer.

If you need assistance with e-filing or your SARS Tax Returns, click here to see how we can help.

Improvements at SARS

Based on recommendations from the tax ombud’s report released in September 2017, the agency implemented several improvements that come into effect for 2018.

One of the big improvements is that SARS are now prioritising the current year’s assessments. In other words, the return of a taxpayer for the current year will be prioritised over the return of a taxpayer from three years ago, said Kingon. “We must give priority to the compliant taxpayer.

Tax refunds will only be paid out if the taxpayer is not facing audits from previous years but VAT refunds will be released despite having audits on previous periods, said Kingon.

Tax Penalties & Prosecutions

After the 2018 SARS Tax Returns Season, the revenue service will also get tough on taxpayers who file late submissions and will ultimately initiate processes to prosecute offenders.

We get taxpayers with outstanding returns for 37 months, who are prepared to pay the penalty and not submit a tax return. One wonders what people are hiding,” said Kingon.

Refer a Friend and Get 20% Off Your Tax Returns

If you want to ensure a stress-free income tax submission in 2018, we are here to help. Our tax practitioners are experienced in submitting tax returns on behalf of our clients and are at-hand to assist. 

Why You Should Outsource Your Income Tax Returns

Income Tax Filing season is almost upon us – time to get your personal tax affairs in order.

Some of us were born to do calculations and manage accounts, but for others, a tutorial video that explains how to use Excel is equivalent to a horror movie. Luckily, MoneyPenny is there to assist and handle these tasks for you..

For this article, we’ll focus on why it’s beneficial to outsource your income tax returns:

Everything is in order

Having all your invoices and slips in front of you is one thing, but organising and categorizing them is next-level. If you make use of our services, your income tax consultant will ensure your documentation is verified and organised in preparation for your submission to SARS.

They Know What to Look For

Income tax consultants have years and years of experience in handling personal tax returns, and that’s why they know what to look for. They’ll be able to pick up on possible savings that you didn’t even know could be tax deductible.

File Income Tax Returns on Time

We understand that you are busy, and that’s exactly why outsourced services exist. Instead of cracking under pressure by trying to submit the last-minute, outsource this task. Your submission will be finalised before you can even ask ‘when is it due’?

Professional guidance and advice

The best part of outsourcing your personal or company tax is the fact that you’ll have peace of mind. Whenever you have any tax or account-related queries, you have someone to contact that will explain the tricky terms and conditions to you.

*Take note that the 2018 Tax Season will be shortened by three weeks, effectively running from the 1st of July until the end October of this year. If you’re not using eFiling, the deadline for manual submissions is 21 September 2018.

Did you know that Moneypenny is offering 20% discount on Personal Tax Returns for the month of June? Don’t miss out on this special!

 

,

Tax Filing Season: SARS Cuts Deadline For Tax Returns

Tax Filing Season

On Monday, 04 June 2018, the South African Revenue Service (SARS) announced some changes to the tax filing season. In an attempt to improve efficiency, the tax filing season will now be shortened by three weeks.

Shorter Tax Filing Season

A shorter filing season allows additional time for SARS, taxpayers and the tax fraternity to deal with returns verifications before most taxpayers go on the December holiday break,” said Acting Commissioner Mark Kingon.

The new tax filing season, themed ‘No Sweat’, is due to start on 01 July 2018 and will end on 31 October 2018. All taxpayers have been encouraged to submit their returns electronically.

The deadline for manual submissions is September 21, while provisional taxpayers will have until 31 January 2019 to file their returns. For provisional and non-provisional taxpayers, the deadline for online tax filing is 31 October 2018.

 

Download the 2018 Tax Calendar – Click Here

 

The tax collection service said it had identified numerous time consuming practices by taxpayers which clogged up the system during the previous filing periods, including submission by people who are not supposed to file tax returns.

The agency also revealed that it was also dealing with an influx of outstanding returns, with a total of 1 million old returns submitted during the 2016 tax season. In 2017, the number of dated returns stood at 733 000.

We would like to move towards clearing the backlog and encourage taxpayers to be informed about their tax obligations and file their returns on time,” said Kingon.

However, SARS said returns for the current year of assessment will take priority over outstanding returns, as experienced had shown that late submissions were susceptible to fraud.

GET 20% DISCOUNT WHEN YOU APPLY FOR PERSONAL TAX RETURN ASSISTANCE BEFORE 01 JULY – CLICK HERE

To ensure that your own personal tax deadlines are met and that your returns are as comprehensive and accurate as possible, contact our team for a consultation.

To contact us, simply complete the contact form below.

, ,

Submission of the 2017/2018 Return of Earnings to the WCA

Return of Earnings Submissions 2018

Return of Earnings – 2017/2018

Employers are required to submit a Return of Earnings form (W.As.8) on an annual basis. The Department of Labour has announced that the 2017/2018 submissions will open on 1 April 2018 until 31 May 2018. Any submissions done after this date will attract a 10% penalty and will have interest added to the account.

GET 20% DISCOUNT WHEN YOU APPLY FOR PERSONAL TAX RETURN ASSISTANCE BEFORE 01 JULY – CLICK HERE

What is a Return of Earnings (“ROE”)?

We are all familiar with the annual cycle of business income tax returns. Well, in the same way, all employers must submit annual returns to the Compensation Fund. This annual return is referred to as the Return of Earnings.

On the form, Employers are obligated to declare actual salaries and wages for the year ended 28 February, as well as the estimated earnings for the following year ending on the last day of February.

For the 2017/2018 ROE we will require the following information to prepare the return:

Actual salaries and wages paid for the period 1 March 2017 to 28 February 2018. (annual value per employee)

Estimated salaries and wages for the period 1 March 2018 to 28 February 2019. (annual value per employee)

From the returns submitted, together with the nature of your business, the Compensation Commissioner determines your annual “premiums”. In other words, you are “assessed” – and you become liable to pay the assessed amount by the end of the following month.

What is the payment for?

The annual payment made by employers to the Compensation Fund, provides cover for their employees who could get injured at work.

Employers are obligated by the Compensation for Occupational Injuries and Diseases Act, 1993 to take out this insurance.

By being registered, employers are protected against civil claims if employees get injured on duty or contract occupational diseases. These employees can then claim compensation for temporary or permanent disablement from the Fund.

Who is an Employer?

An employer is any person, who employs one or more workers in connection with their business or farming activities.

Who is an employee?

An employee is a person who has entered into, or works under contract of service or of apprenticeship or learnership with an employer, whether the contract is expressed or implied, oral or in writing, and whether remuneration is calculated by time or work done, or is in cash or in kind; and includes:

  • A casual/temporary employee, employed for the purpose of the employer’s business
  • A working director of a company or a member of a body corporate, who has entered into a contract of service or of apprenticeship or learnership with the body corporate, in so far that the employee acts within the scope of his/her employment in terms of such contract

A person provided by a labour broker, against payment to a client for the rendering of a service, or the performance of work, and for which service or work such person is paid by the labour broker, is an employee of the labour broker. The earnings of such persons should not be included in the client’s Return of Earnings document.

Return of Earnings Deadline South Africa

Who must register with the fund?

All employers who employed one or more part-time or fulltime employees in connection with their business or farming activities must register within seven days with the Compensation Fund. The application however, once submitted can take several months to be completed by the Fund.

A separate registration is necessary for each separate branch of a business, unless an arrangement for combined registration has been made with the Fund.

MoneyPenny are registered and experienced in submissions of Return on Earnings and will gladly assist you and your business in doing so.

Our Charges (ex VAT):

Registration with the Fund: minimum of R800 or time spent

Annual Return submission: minimum of R500 or time spent

To request assistance in this matter, please complete the form below and our team will be in touch.

, ,

Tax and Bitcoin – What Does SARS Say About It?

Do I pay tax on Bitcoin?

‘Tax and Bitcoin’ are on everyone’s lips as we try and figure out where SARS stands on the issue of taxation on cryptocurrency. They recently made their stance on tax and bitcoin more clear – here’s what they had to say.

The South African Revenue Service (SARS) will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.

In a statement released on Friday (6 April), the revenue service said that the onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued.

Failure to do so could result in interest and penalties, it said.

Increased attentiveness and speculation regarding the future of cryptocurrencies has prompted calls for SARS to provide direction as to how cryptocurrencies should be treated for tax purposes,” it said.

However, as indicated in this media statement, there is an existing tax framework that can guide SARS and affected taxpayers on the tax implications of cryptocurrencies, making a separate Interpretation Note unnecessary for now.


Legal position

In South Africa, the word “currency” is not defined in the Income Tax Act (the Act).

Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange.

As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature, it said.

Whilst not constituting cash, cryptocurrencies can be valued to ascertain an amount received or accrued as envisaged in the definition of “gross income” in the Act,” SARS said.

“Following normal income tax rules, income received or accrued from cryptocurrency transactions can be taxed on revenue account under “gross income.

“Alternatively such gains may be regarded as capital in nature, as spelt out in the Eighth Schedule to the Act for taxation under the CGT paradigm.

“Determination of whether an accrual or receipt is revenue or capital in nature is tested under existing jurisprudence (of which there is no shortage),” it said.

SARS said that taxpayers are also entitled to claim expenses associated with cryptocurrency accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.

SARS added that gains or losses in relation to cryptocurrencies can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

1. A cryptocurrency can be acquired through so called “mining”. Mining is conducted by the verification of transactions in a computer-generated public ledger, achieved through the solving of complex computer algorithms. By verifying these transactions the “miner” is rewarded with ownership of new coins which become part of the networked ledger.

This gives rise to an immediate accrual or receipt on successful mining of the cryptocurrency. This means that until the newly acquired cryptocurrency is sold or exchanged for cash, it is held as trading stock which can subsequently be realized through either a normal cash transaction (as described in (2) or a barter transaction as described in (3) below.

2. Investors can exchange local currency for a cryptocurrency (or vice versa) by using cryptocurrency exchanges, which are essentially markets for cryptocurrencies, or through private transactions.

3. Goods or services can be exchanged for cryptocurrencies. This transaction is regarded as a barter transaction. Therefore the normal barter transaction rules apply.


Value-Added Tax (VAT)

In the 2018 annual budget review, Treasury indicated that the VAT treatment of cryptocurrencies will be reviewed.

Pending policy clarity in this regard, SARS will not require VAT registration as a vendor for purposes of the supply of cryptocurrencies.

If you need assistance with your personal or business tax, please contact us.

Original Article on www.businesstech.co.za

2018 Tax Calendar – Download & Print Here

With so many important dates and deadlines from SARS, it can be overwhelming to figure out when to submit which documents. If any documents are not submitted in time, SARS may impose penalties which could cost you or your business money.

To avoid these penalties, it is important that you keep note of the 2018 Tax Calendar and make sure you are aware of all deadlines well ahead of time.

To assist with this, we’ve compiled a .pdf document with the 2018 Tax Calendar that you can bookmark or download and print for safekeeping.

To download the 2018 Tax Calendar, please enter your email address below and we’ll send you a download link.

Should you require any further personal or business tax or accounting information or assistance, please click here to contact us. A MoneyPenny staff member will get in touch and assist where possible.

For more business tax and accounting news and updates, follow us on LinkedIn and Facebook – Click the icons below.

,

4 Signs that You Need Business Consultation Services

Seeking out consultation for your business doesn’t mean that you are desperate or in trouble. On the contrary, business consultation gives you the chance to eliminate risk factors and implement valuable problem-solving skills that will benefit the future of your brand. Of course, a business consultant will also be able to assist with current issues and queries.  

Here are 4 signs that point to the fact that you might be in need of a professional business consulting service:

You don’t have a Vision

It might be the case that your business is running exactly the way you want, but you don’t know what the future holds. As a business owner, it’s important to have a vision for your business and a clear idea of what it is you want to achieve. Without a vision, you cannot implement a realistic strategy and analyse business growth.

Your Employees Aren’t Performing

In order to inspire your employees, you have to create incentive and set goals for their performance. All leaders are different, and if you don’t see yourself as the type of leader to adequately manage your team, a business consultant will be able to give you insights on how to manage your workforce.

You Are Burning Out

Managing a business comes with a lot of stress and responsibility. If you don’t have a big team, it can get really tough to manage it all. A business owner that’s overworked won’t be able to function optimally. A business consultant will be able to help you structure your time and resources to boost productivity and include ‘down time’.

You Need A Fresh Perspective

One of the biggest benefits of having a consultant is gaining access to a fresh, new perspective on your business happenings. This individual will have an objective opinion on your business structure and will help you pinpoint factors that you might have overlooked because you’re personally involved.

We Offer Business Consultation Services

These are just a few of the reasons why having a business consultant can really benefit your business. At Moneypenny, we offer a business consultation service that will help you grow your business and reach your goals. 

To get more information, contact us by clicking here.

For more business tax and accounting news and updates, follow us on LinkedIn and Facebook – Click the icons below.

, ,

Everything You Need to Know About Business Tax in 2018

It’s been a busy start to 2018 as businesses prepare for the year ahead. The Minister of Finance delivered the Budget Speech on 21 February and now we’re left wondering how all his announcements will affect our personal finances and the way we conduct business.

There have been plenty of changes when it comes to taxation and reliable information can be hard to come by. Therefore, we’re making available to you, two important documents that outline the 2018 Budget Tax Guide as well as a Budget Tax Summary by The South African Institute of Chartered Accountants.

 

Click the buttons above to download.

Contained in these documents, are everything you need to know about business tax for the year ahead. Should you require further support with regards to your tax, accounting or HR, please do not hesitate to contact us.

For more business tax and accounting news and updates, follow us on LinkedIn and Facebook – Click the icons below.

, ,

Budget 2018 – What You Need to Know

On Wednesday, the Minister of Finance, Malusi Gigaba delivered the much-anticipated and hotly debated Budget Speech for 2018.

While most of us were stuck at work, unable to listen to what the Minister had to say, there were some very important announcements that could change the way we do business and handle our finances.

Here are some of the most important points, curated by MoneyPenny.

The increase in VAT

One of the most prominent announcements was the increase in VAT from 14% to 15%. This will be the first increase in VAT since 1993 and will allow government to raise an estimated R36 Billion in the next financial year. R23 billion will be used to cover current government debt.

It remains to be seen what impact this will have on poor households. The government have retained their zero-rated VAT on basic items such as maize meal, brown bread and rice.

No Wealth Tax

There’s been a lot of talk surrounding the introduction of a wealth tax that will see wealthy people having to pay an annual tax on the sum of their assets.

This has not yet been introduced but there was an increase in the ad-valorem excise duty rate on luxury goods from 7% to 9%.

Estate duty also saw an increase from 20% to 25% for estates of R30 million or more.

Higher Fuel Levies

The fuel levy will increase by 22 cents per litre while the Road Accident Fund levy will increase by 30 cents a litre.

This means that no matter what mode of transport you use, you will end up paying more to get from one point to another.

This will certainly have a negative impact on the poor and could lead to changing in the way that we commute.

Free Education

After Jacob Zuma’s bombshell announcement that the government will provide free education to the poor, R57 billion has been set aside to make this happen over the course of the next three years.

First year students with a family income of less than R350 000 per annum at universities and TVET colleges will be funded for the full cost of study.” 

While the exact impact of these fiscal changes remains to be seen, we urge everyone to be very wary of their spending habits and encourage you to ensure that your tax affairs are in order.

For assistance with any accounting and tax related issues, please do not hesitate to contact us.