Contracting Benefits vs Salary
By Marc Sevitz · Updated
I am currently a salaried employee and I get deductions for:
- Medical aid
- Travel allowance
- Retirement (RA)
I am considering contracting (to one client). Will my total monthly invoiced amount be taxed normally? I will have to pay for medical, travel and RA directly. Am I losing out or do I still claim for these somehow?
- Medical aid
- Travel allowance
- Retirement (RA)
I am considering contracting (to one client). Will my total monthly invoiced amount be taxed normally? I will have to pay for medical, travel and RA directly. Am I losing out or do I still claim for these somehow?
You will still be able to claim for those deductions regardless of how you are earning income.