Womantrepreneur, Carol Ann Smit talks on setting up your business for optimal tax breaks

Womantrepreneur, Carol Ann Smit talks on setting up your business for optimal tax breaks

In 1789, Benjamin Franklin stated, ‘There are only two certainties in life: death and taxes.’

My name is Carol Ann Smit, and I have run my own business’s for over 36 years. With my vast experience, I have served a variety of companies from small to large with services like Full Accounting, Set Up, Registration & Financial Management from shoe box to Financial Management Reports of up R50 million annual turnover.

My company Accnetix also networks with experts in different fields of finance and accounting.

I am a registered Tax Practitioner, while specialising in Financial management. I have run projects which include setting up companies, full administration, training, payroll, Bank reconciliations, Petty Cash, management & Financial reports, Budgets, Statutory Returns such as VAT, PAYE, Income Tax, CIPC and anything pertaining to the compliance of running your business .

My most recent qualification is as a Certified Registered Life Coach with a particular focus on finance.

As business owners, our time is consumed with taxes, and this is especially true when we are setting up our business. I imagine the difficulty of this is why most choose to avoid setting up and paying tax across but in reality; evasion IS NOT an option.

We all have expectations of income and a basic plan to realise the required income, and often tax is not considered at that moment.

  • Can you be specific about your fears of Tax and Compliance when planning?
  • You are a budding entrepreneur so how are you going to blossom?
  • So you have an idea?
  • Do you have the resources?

We know that if we are going to be successful, we need to consider two significant budgets and both affect the Finance as that’s our –bottom Line!_______________

  1.    Budget 1 –Nature of business and logistics of what we plan to do to generate an income. I use the word Nature as this will ultimately determine how much tax you will pay. Moreover, I know one thing about each one of you reading this – you are going into business to ‘Increase The Bottom Line.’
  2.    Budget 2 – would need to be created to integrate the finances and that may not necessarily agree with the way we set up the finances now!

So budding Entrepreneur, this is when you need to ask an expert.

The focus today is to work with Small Medium Business Income Tax. Also, to give you insight into the facts and options which you need to decide on in the planning stage of set up.

Without going into too much detail and keeping it simple for us to get into the correct mindset –In an attempt to focus on budding Entrepreneurs

I will show you examples of the possible  comparisons of Income Tax according to the SARS different Tax tables  – Taking into consideration that this is only a guide at the moment as there are many other considerations and criteria when actually putting into practice which we can discuss by making an appointment with me.

  1. PLEASE NOTE THE TAX TABLES FROM SARS DO CHANGE EVERY YEAR & can be obtained from the SARS website.

Here we have 4 examples using a consistent of total Income of R300,000.00 per annum with a net Profit of R200,000.00 (please note these are examples only).

  1.    Simplified Turnover Tax for individuals running a small enterprise only (which not many people are aware of) based on R300,000.00 Income
    Tax could calculate to be R1,500.00
  2.    Trading as, (for example) Jane Smith Trading as ABC Consulting Nett Profit R200,000.00 for the year would be calculated as normal IT on a
    sliding scale between 18% and 26 % possibly Total to  R36,960.00.
  3.    Companies that do not qualify for SMBC PTY Ltd Most Business’s Based on Net Profit of R200,000.00 28% from zero IT will be calculated to
  4.     So first prize on start-up would be to qualify for SMBC

With a Net Profit of R200,000.00 Tax would be nil IT from 0 to R75750

R75 751 to R200,000.00 7% Calculates to R8,697.50.

I trust this has helped you today to seriously consider getting professional help at the planning stage to avoid headaches today and failure later.

What you can expect from me

First appointment: 1 hour (as a Womantrepreneur 30 minutes would be free)

My services include:

access to three very experienced associates – a Registered and highly qualified accountant (who has saved my clients’ vast sums of money in IT and  -one client received a VAT refund of over R1 million Rand last year). The other is a CA whom I have worked with for 12 years (on an excel based Accounting programme that can be set up according to the nature of your business that you either run yourself with full support via Team Viewer), and lastly, my highly experienced Income Tax submissions department with the expertise to submit Income Tax knowing all the intricate savings that come with final submissions. The last option is that my team can run your full accounting and payroll for you at a cost-effective fully inclusive hourly rate.

Accnetix (Pty) Ltd is a member of Womantrepreneur.co.za and is waiting to serve you well.

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