How would I handle tax for freelance work?
By Marc Sevitz · Updated
Would I be expected to pay 25% of all the income from June 2013- February 2014, on payment #2 IRP6 (February 2014)?
In terms of business expenses, I constantly need an ADSL line and will have to upgrade the computer I work on within the next coming month for better productivity. The ADSL line is not on my name, but I do have to pay some portion of it per month to the owner (its very mutual - as in, cash in hand, no invoice). How would I handle both these cases?
When would I potentially claim for these business expenses?
Do you only provide work for this company? Does the company provide you with a monthly payslip?
Yes I only provide work for this company. I get paid every 25th of each month, but the salary varies depending on hours of work I put in. So its never a set salary of 10K and never a set amount of hours I work every month. I work from home, but am employed by them. I do however have to sort out my own tax, which is why I am unsure of how to go about it.
Thank you for your swift response.
Thank you for your swift response.
Your company will have to apply for a tax directive in determining how much PAYE to take off each month. However sometimes companies don't do this and mistakenly leave their employees to do it.
If that is the case then you would have to register as a provisional taxpayer
Provisional Tax Guide
Your tax would be based on the annualised earnings and then subject to the tax tables. As a commisison based earner you can deduct any expenses which are directly related to you earning the income - business expenses. For the new computer bought you can write off a part of the expense to a wear and tear allowance.
Home Office Expenses
If that is the case then you would have to register as a provisional taxpayer
Provisional Tax Guide
Your tax would be based on the annualised earnings and then subject to the tax tables. As a commisison based earner you can deduct any expenses which are directly related to you earning the income - business expenses. For the new computer bought you can write off a part of the expense to a wear and tear allowance.
Home Office Expenses