1 / 7

IQuote Wealth Smart accounting

IQuote Wealth Smart accounting. T2 and T4. Fact. The average household earns 100% income Pays 30% to tax Pays 30% to debt They try and live off 40% of their income which is why most people have more month than money.

jory
Download Presentation

IQuote Wealth Smart accounting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. IQuote WealthSmart accounting T2 and T4

  2. Fact • The average household earns 100% income • Pays 30% to tax • Pays 30% to debt • They try and live off 40% of their income which is why most people have more month than money. • Simple solution= reduce your expenses or increase your income. Why not do both? • Wealth comes from what we keep not what we earn.

  3. Smart accounting • If your expected to pay tax on earnings, anything that costs money to make money is taxable. • If your paying tax, this should be seen as a good thing as this means your making money. • Some people seem to be making money as they are paying tax, however, they don't know that they can claim for certain costs if they owned a business. • We are not accountants, this is a simple guideline to the logic of being smarter with your income, always consult a professional to assist you to execute this correctly.

  4. The difference Salary earner Business owner Income R 50 000 Car R 5000 Fuel R 2000 Rent / Bond R 10 000 (3000) Cell R 1500 Stationary R 200 DSTV R 650 Internet R 200 Laptop R 200 PM Net R 37 250 Tax 30% = R 11 175 Saving R 4325.00 X 12 = R 51 900 PA • Income R 50 000 PM • Tax 35% Gross = R 15 500 • Net = R 34 500 • Car R 5000 • Fuel R 2000 • Rent / Bond R 10 000 • Cell R 1500 • Stationary R 200 • DSTV R 650 • Internet R 200 • Laptop R 200 PM (FINANCE) • Net R 14 750

  5. Other benefits • When a person owns a company, the company pays tax on profits, so all personal business costs can be moved over to the company. • If a person has a wife that is unemployed or a son, that lives in the family home, one can employ them for R 5000 per month tax free if they help in the business. • The company pays 30% TAX on profits, so all costs can be deducted and pay on the net, not gross. • When you want to withdraw the profits, you can take a dividend per annum at a tax rate of 15%.

  6. Earnings • Company R 100 000 PM • Expenses R 80 000 PM, including Wife salary R 5000, two unemployed children R 5000 each who now work for you. Tax on net R 20 000 = 30% R 6000 Tax on dividend R 15% = R 2100 Net dividend withdrawal R 11 900 Tax free.

  7. Current • What could you justify currently that your not deducting for? • We are not tax specialists, but there are other things that can be structured by taking on a professional tax consultant. • The first step, own a business, the second start earning an income. • The third structure yourself to be tax efficient.

More Related