Monthly Archives: March 2014

First year’s concert

The theme for the 2014 first year’s concert was Newtons got talent.

The show started off with a BANG! We were all very excited and nervous as the line-up forced us to step out of our comfort zones.

Our first performance was an act we called “the single ladies” and was performed by all the first year guys. Never would they have imagined themselves in 10cm mini skirts’, pink wigs and stilettos!

The audience thoroughly enjoyed the act and so did the performers.

Next up we was “Gatvol/dancing big butts” which was a parody of Miley Cyrus’ wrecking ball. The combination of these two performances was hilarious and the crowd went wild. The above two performances set an amazing tone for the rest of the show.

Next on our line-up was the “Leeuloop” which took the show to a whole new level of interesting. Mixed reactions were observed from the crowd, with some shrugging and some turning red in the face. This performance was well received.

Then we had a magic trick courtesy of Ntsane, which created a great atmosphere of unity at the show.

The finale…was called “The cup song” which started very well and is now topping the YouTube charts. Please go have a look.

The first year’s concert was exciting and extremely fun. Very stressful at first, but most importantly an amazing team building exercise for the first years and a good platform for the first years to socialize with the Newtons family.

I must congratulate the first year’s team: Daniel, Doreen, Eric, Luzanne, Nadia, Sharidon, Siseko, Tineke and Reatile; without you guys the concert would not have been a success. Thank you!
1st Years getting ready for the big show
1st Years getting ready for the big show “Newtons has Talent”
From left to right: Sharidon Williams, Daniel Lombaard, Eric Salley, Doreen Banyane, Luzanne Harmse, Tineke Erasmus-Nel, Reatile Tsolo, Siseko Tose, Nadia Tarr, Ntsane Rantekoa.
Nadia Luzanne and DoreenNadia, Luzanne and Doreen won over the judges with their brilliant performance “gatvol”

Proof required for Income Tax Returns: Individuals

C
Following the conclusion of the tax year on 28 February 2014 documents are issued to you that must be retained for tax purposes.
The following documents should, if applicable, be submitted to the accountant who completes your tax return and should be available if the South African Revenue Service (SARS) requests them:

1. IRP5 and IT3 certificates
IRP5 and IT3 certificates reflecting salary, annuities, pension and other income received.

2. Interest received – local and foreign
IT3 certificates reflecting the interest received for the year 1 March 2013 to 28 February 2014 relating to savings accounts, cheque accounts, fixed deposits and other investments.

3. Dividends received – local and foreign
Details and/or proof of dividends received.

4. Bequests and donations received
Details and/or proof of bequests and donations received.

5. Capital gain or loss
The following information is required:

  • Was the asset your residential property?
  • Return on the sale of the asset.
  • Base cost of the asset, i.e. the purchase price if purchased after 1 October 2001, or a capital gain valuation of the asset.

6. Other income
Details and/or proof of other income (e.g. partnership income).

7.  Medical fund contributions

  • Medical fund contribution certificate.
  • Proof of payment of claims not covered by your medical fund and paid by yourself.

8. Annuity fund contributions
Annuity fund contribution certificates.

9. Travel allowance
If you wish to claim expenses against your travel allowance, the logbook for the tax year is required, together with the following information concerning the vehicle for which you received the travel allowance:

  • Make and model
  • Year of manufacture
  • Purchase price
  • Registration number
  • Kilometre reading on 1 March 2013
  • Kilometre reading on 28 February 2014

If you kept a record of travel costs incurred during the year, proof of the following is required:

  • Fuel and oil consumption
  • Repairs done
  • Insurance and licence fees
  • Lease/Installment agreement

10. Income protector
Contribution certificates.

11. Donations
Proof of deductible donations.

12. Other information
Details of any other action or event that may influence your tax liability.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

How does the new Employment Tax Incentive (ETI) work?

BWhat is ETI?

ETI is a tax concession made to encourage employers to hire young people with no work experience. The employer may claim the ETI from the South African Revenue Service (SARS) by reducing the amount to be paid over in terms of PAYE by the total ETI calculated  on the basis of qualifying employees. This tax concession came into effect on 1 January 2014.

Who qualifies for ETI?

Employers who are registered for PAYE purposes and whose tax affairs are in order, are permitted to claim ETI. If an employer’s tax affairs are not in order ETI may still be claimed, subject to certain restrictions, as soon as the tax requirements are complied with.

Who does not qualify for ETI?

  • Employers who have been disqualified by the Minister of Finance due to their replacing existing workers or who do not comply with the regulations prescribed by the Minister.
  • Instances where the employee’s monthly remuneration :
    1. is less than the regulated remuneration, or R2 000 where remuneration is not regulated;
    2. would be less than R2 000 if the employee worked for only a portion of the month.

When may ETI be claimed?

Employers may claim ETI if they have workers in their employ who comply with the following requirements:

  • They must be in possession of a South African identity document.
  • They must be between 18 and 29 years old. (This age limit is not applicable if the employer’s fixed business address falls within a special economic zone or if the employer operates in an industry designated by the Minister of Finance.)
  • They must not be domestic workers.
  • They may not be family of the employer or be in any way connected to the employer.
  • They must earn at least the minimum wage or, should there be no required minimum wage, R2 000 per month.
  • Their earnings must be less than R6 000 per month (fringe benefits included).

Note: ETI may be claimed for a maximum of 24 months per qualifying employee.

How is ETI claimed?

An employer can claim by reducing the PAYE payable monthly, by the total ETI as calculated for each qualifying employee. This can be done by completing the ETI field on the monthly EMP201.

There is no limit on the number of qualifying employees that may be hired.

Note: Employers must be able to produce the identity documents of the employees that ETI is claimed for, if requested to do so by SARS.

How is ETI calculated?

Employers must carry out the following steps each month:

  • Identify all the qualifying employees for the month.
  • Determine the relevant claim period – first 12 months or second 12 months.
  • Determine each qualifying employee’s monthly remuneration.
  • Determine the amount of ETI for each qualifying employee.
  • Calculate the total ETI for the month.

The ETI is calculated as follows:

Monthly remuneration Year 1 – first 12 monthsETI for qualifying employees Year 2 – second 12 monthsETI for qualifying employees
R0 – R2 000 50%  of monthly remuneration 25% of monthly remuneration
R2 001 – R4 000 R1 000 R500
R4 001 – <R6 000 Formula: R1000 – [0.5 x (monthly remuneration – R4 000)] Formula: R500 – [0.25 x (monthly remuneration – R4 000)]

If a worker was employed for only part of the month, calculations must be adjusted accordingly.

Note: If the value of the ETI is more than the PAYE liability of the entity for a specific month or if the employer is not able to claim for a specific month, the ETI is carried over to the next month.

What fines are applicable?

Fines will be imposed should, inter alia:

  • An employer claim ETI for an employee who does not qualify. The penalty will be equal to 100% of the ETI claimed and the employer will consequently face PAYE underpayment and penalties and interest.
  • An employer replace an employee with a qualifying employee. In such a case the employer could be fined R30 000.

The foregoing is only a limited summary for information. Consult your financial adviser for more details.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

Cost management: 7 Tips for cutting business expenses

AIt is important for every business owner to make a maximum profit, both through sales and by maintaining strict financial discipline within the company. Implement sound practices from the start, and you will reap the benefits later. These seven tips on cost management will be beneficial for your small enterprise.

 1. Watch expenses from day one.

 You might think that overspending during the first few months after opening your doors is forgivable, but discipline is needed right from the start. Spend money only on the necessary and always look for cheaper alternatives. Money saved now will reap rewards later.

 2. Don’t confuse business and personal expenses.

When getting ready for tax season, file your personal and business expenses separately. Be honest and keep your accounting books clean to avoid enquiries from SARS.

 3. Keep detailed and accurate purchasing records.

Accurate record keeping helps you manage your business expenses effectively. Record every purchase, from the smallest to the largest, so that it becomes the custom for everyone in the company. In this way you can see where your money is going and you can cut back if necessary.

 4. Shop around for a low-interest credit card.

As a small business there is the possibility of acquiring a credit card with low interest rates, so visit different banks and find the right one for you. Your card should assist you in expanding your business without the worries of growing debt from high interest rates.

 5. Run reports early and often.

Review your expenses on a weekly basis so that any additions will be picked up immediately. Do this right from the start and include every aspect of your business, including salaries and any new expenses you might have incurred. This is easier than having to backtrack later.

 6. Invest in technology that will last.

Don’t try to save money on inferior technology; rather buy better quality and save on repairs and replacement costs in the long run. You will get more value from the better product and it is also tax-deductible.

 7. Continue financial responsibility.

The skill of budgeting effectively and saving money is imperative for launching a business. Don’t stop saving money after a while; continue to do so and expect the same from your employees. Growing a business is only possible when you accept your financial responsibility. By using these cost management tips your business will become financially more flexible as it expands.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.