How to Pay Less Tax

IMPORTANT: There are people that think that they will have to pay a lot of taxes if they start a small business whilst they are still working for a boss. That is simply not true. It is all about how much revenue you earn from your employer and your business. If you do not earn a lot of money, and I mean a lot of money, you will never pay a lot of tax even if you have 2 different businesses. The government wants small businesses to prosper and that is why small businesses are treated differently than big companies. Big companies pay much more taxes than small businesses.

Small businesses have a lot to offer because they also employ people. When small businesses start manufacturing products they have to employ people once they start to grow. As the business grows, more people have to be employed to do the work and this makes a country flourish. That is why there are so much money being put aside by government to help small businesses grow.

Whereas big companies have a lot of money, small businesses do not and therefore the tax that small businesses pay is very much less. What is true is that if you have any type of business you can deduct all expenses that is incurred in starting and running that business from your taxes.

For example, that vehicle that you bought to transport your goods and products is deductible from tax and so is the stationary that you bought and the raw materials that you bought to manufacture the products that you will be selling. You can deduct the cost of the premises that you work from and the salaries that you paid your employees and so can you deduct any other expenses provided that you keep all the invoices that shows how much you have paid for any service or product that you offered for sale. All of these invoices must be kept safely so that it can be presented to SARS in order for you to claim and deduct these expenses from your tax.