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Freelancers and Tax

Freelancers and Tax Registration

No need to worry we are giving you the information

Freelancers and tax. You are out there on your own in a tax environment that is probably more complex than you imagined it ever would be. For the regular nine to fivers, a paycheck arrives at month end, with a neatly deducted amount and SARS is magically paid up. Then once a year they have to submit a return and that SARS off their backs.

For a freelancer though, life is a different story. Sure you get to work from your favoured coffee shop and sleep as late as you want. But when it comes to admin, such as toll, the reason your’e sleeping late is because your’e up all night staring at the ceiling wondering when SARS are going to break down the door and haul you up for evasion.

Firstly, relax. Roll up your jeans, pat your dog and listen up. https://www.justmoney.co.za

A freelancers guide to taxes

Freelancers certainly has it’s benefits, but it can result in a few complications. The internal Revenue Service considers freelancers to be Self-employed, so if you earn income as a freelancer you must file your details with SARS

Your first step as freelancer is to gather and report all sources of income. If you’re like many freelancers, you have many sources. When you’re self-employed, you are your own boss – which is great news until tax time. In addition to regular income tax, freelancers are responsible for paying self-employment toll

A common problem is not being registered for SARS in the first place. As a freelancer, running your business is a full time job and admin such as registering gets left behind. Then when work starts coming in, its small amounts and you figure you may fall under SARS radar anyway.

Unfortunately this is not one of those problems that just goes away by itself like dub step. Fortunately, the first step to sorting it out is to get registered for tax. Registration has to be done in person at a SARS office, and this will probably involve waiting in a long line. You will need: A bank statement, Your ID and Proof of Address.

The good news is that once registration is done, most tax concerns can be dealt with online via the SARS e-filing service. https://williebrits.co.za/great-payment-methods-paypal-and-payoneer/

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