Can I claim if I freelance?

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Cape Town - To help make the filing process as seamless as possible, Fin24 has joined forces with the SA Institute of Tax Professionals (SAIT), to answer users' tax questions as far as possible.

In the next question a Fin24 user wants to know if he can claim if he is a freelancer.

Piet Nel, SA Institute of Tax Professionals responds:

We assume the question relates to making deductions from gross income in arriving at taxable income for normal tax purposes.  

If the income (from freelancing) accrues to you in your capacity as an independent contractor (in the course of any trade carried on by you independently of the person by whom such amount is paid or payable and of the person to whom such services have been or are to be rendered) you will be entitled to the deductions and allowances permitted by the Income Tax Act. 

You didn’t give an indication of the expenses involved, but the deductions would include expenditure actually incurred in producing the income (not capital in nature), allowances in respect of assets used in the trade, cost of premises used, business travel, etc.  

If you are deemed to be an employee (if the services are required to be performed mainly at the premises of the person by whom such amount is paid or payable or of the person to whom such services were or are to be rendered and the person who rendered or will render the services is subject to the control or supervision of any other person as to the manner in which his or her duties are performed or to be performed or as to his hours of work) the deductions and allowances may be limited. 

For instance, the expenditure actually incurred in producing the income and business travel will then not be permitted.

* Have a question? Send it to us and we will find an expert to answer.

Please note: The important deadline dates in the 2015 tax season are:

September 30 2015: Manual/postal submissions
November 27 2015: At a SARS branch (non-provisional)
November 27 2015: eFiling (non-provisional)
January 29 2016: Provisional taxpayers via eFiling

ALSO SEE previous tax questions from users:

Can interns claim for travel expenses?

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Expat receiving pension from SA: Do I pay tax?

What are the limits on claiming travel expenses?

Can I claim for using my own car for work?

Temp teaching for 6 months, must she pay tax?

Working in Saudi, do I also pay tax in SA?

Can I claim for travel expenses?

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