Let’s Make Your Freelance Income SARS-Ready.
Are you managing a side hustle or freelance work alongside your main job? Whether it’s a passion project or a way to boost your income, staying on top of your taxes is crucial to ensure you’re compliant and stress-free. Here’s a step-by-step guide to managing your taxes as a freelancer in South Africa:
Step 1: Register as a Provisional Taxpayer
If you’re earning additional income outside of your regular salary, you’ll need to register as a provisional taxpayer with SARS. This ensures that you’re paying taxes on your freelance earnings and avoiding any penalties. Early registration helps you stay on SARS’s good side while keeping your finances in order.
Step 2: Track Your Expenses
Keeping detailed records of your expenses is key to reducing your tax liability. Save receipts for:
- Travel and transport
- Internet and software tools
- Office supplies
If it’s related to your hustle, it counts! These expenses can be deducted from your income to lower the amount of tax you owe.
Step 3: Separate Personal and Business Accounts
Mixing personal and business finances can lead to confusion and errors when filing taxes. Open a separate bank account for your side hustle to keep things neat and transparent. This makes it easier to track income and expenses, ensuring accurate and hassle-free tax returns.
Step 4: Submit Bi-Annual Provisional Tax Returns
Freelancers and side hustlers are required to submit provisional tax returns twice a year, in August and February. These submissions ensure you’re paying your tax liability in advance and avoiding a hefty bill at the end of the tax year.
Bonus Tip: Claim Home Office Expenses
Do you work from home? If you have a dedicated workspace, you can claim a portion of your rent, electricity, and internet as business expenses. This is a great way to save on taxes while running your hustle from the comfort of your home.
Need Help Managing Your Side Hustle Taxes?
Taxes can be tricky, but they don’t have to be overwhelming. At TTT Financial Group, we specialise in helping freelancers and small business owners navigate the complexities of tax compliance. From registration to returns, we’re here to make your tax journey stress-free.
Reach out to us for tailored advice and support: info@ttt-tax.co.za