Month: November 2021

The last couple of years, and the prolonged lockdown, have highlighted the convenience of working remotely and migrating work to digital platforms.
“Cloud computing” is one of the trendier buzz word phrases that have increased in popularity, but what exactly does it mean and how can it benefit your business?
Simply put, cloud computing refers to the on-demand access to work through computing software and applications, data storage and networking capabilities via the internet, and – equally as important – in real time and remotely.
This is a big advantage, considering that businesses can save on certain running costs, including decreased logistical expenses. The process however has it challenges and SMEs looking to adopt cloud computing should consider a number of issues.

Building and maintaining an effective online presence should be at the heart of any business plan, and it may come as some surprise in 2021 that there are still a huge number of businesses with absolutely none. Owners cite the fact that they are “not in a digital industry” but they ignore the internet at their own peril. The truth is that an online presence is vital for boosting profitability in any business, even for brick-and-mortar stores that don’t conduct e-commerce.
Further, in a world where 250 000 websites are created every day, it’s important that the website you do have stands out, delivers on your brand promises and can be quickly and easily found by anyone who is looking. Here are six tips to make sure that happens.

Since 2001, taxpayers in South Africa have been liable for Capital Gains Tax (CGT) on profits (capital gains) arising from the disposal of assets – at a hefty 18% for individuals.
There is a less well-known specific exclusion to the CGT payable on the disposal of a small business or its active business assets that provides certain small business owners with welcome CGT relief that could be a substantial boost to your future plans.
In this article, we provide a quick overview of the many conditions that apply before small business owners can claim this exclusion of up to R1.8 million; some examples to illustrate the substantial difference it can make to your future plans; as well as best advice for maximising this exclusion.

For taxpayers who have been auto-assessed by SARS, the 23 November deadline to accept or edit the return/auto-assessment result is less than three short weeks away.
Failing to accept or edit the return by the deadline; or simply accepting the result of an auto-assessment on the assumption that SARS must be correct; or submitting an incomplete or incorrect tax return can result in paying too much tax, becoming liable for penalties and interest, and even facing criminal prosecution (a risk more likely than ever before with as many as 1 in 10 auto assessment returns being audited after submission).
A year after SARS first introduced auto assessments for the majority of taxpayers, this article considers what has changed and what is still important to know, and also provides 7 reasons why you should contact your accountant if you have been auto assessed.

“The future of money is digital currency” as Bill Gates put it, and certainly interest in crypto currencies – like Bitcoin, Ethereum, Polkadot, Solana and the many others popping up all the time – is surging dramatically. Of growing importance therefore is that anyone holding or planning to buy cryptocurrency needs to understand the tax angle, and by way of an updated warning to keep up to speed on this we point you to SARS’ new webpage on the subject for a “from the horse’s mouth” take on the whole question. SARS addresses questions such as what a crypto asset is, whether tax needs to be paid, how it will work (with an example of the 2020/21 tax year ITR12 Tax Return), and how it traces crypto asset transactions.

Starting a new business can be stressful. Long hours and late nights become the norm as you battle to do as much as possible yourself knowing that taking on staff is a big commitment. Understanding just when to onboard staff and pass on some of the responsibility is a skill in and of itself, but you need not take the plunge immediately. Building a team of reliable freelancers can give you as a business owner peace of mind within a budget and has none of the commitment that hiring staff does. A team of freelancers can easily be upgraded and downgraded as necessary depending on conditions and you only need to hire to fit your current workload. It is this flexibility that makes working with freelancers a valuable tool to growing your business. Here is how you do it.

Cashless transactions have been increasing in popularity as a preferred means of payment, particularly by smaller businesses and particularly since the start of the Covid-19 pandemic. “Fintech” solutions such as tap-to-pay, interbank instant deposits, eWallet, PayPal, Snapscan, Zapper continue to grow in popularity.We have a look at a survey conducted during the pandemic, and at the resulting report which draws out interesting behavioural changes taking place under lockdown and discusses whether these will endure. There is a notable move towards digital methods of conducting financial transactions and SMEs are embracing the trend. We list four reasons why this could benefit your small business…

As SARS improves its abilities to collect taxes from businesses, more companies have found themselves on the receiving end of a SARS letter of demand. Receiving such a letter of demand is often an intimidating surprise for business owners and managers, and can cause panic and stress, even among businesses that would consider their tax responsibilities to be up-to-date and compliant. Whether or not the letter of demand is real, correct or accurate, as a business owner you are well advised to handle such communications from SARS with care! In this article we find out what it means to receive a letter of demand, how to handle the matter and what steps to take.