INDIVIDUAL TAXPAYER FAQ

1. I’ve been auto-assessed. What should I do next?

• Review your SARS Notice of Assessment (ITA34)
• Check if your income and IRP5s are correctly reflected
• If correct, you do not need to do anything
• If not correct or if expenses are missing (e.g., medical, rental), file an amended return manually or contact Ulwati to file on your behalf.

2. I have not been auto-assessed. What should I do?

• Log into eFiling and file your return manually or contact Ulwati to file on your behalf.
• If unsure why you were not auto-assessed, contact Ulwati for a profile review

3. I took out my 2-pot savings. Will I owe tax or get a refund?

• It depends on your income and tax bracket
• SARS may move you to a higher bracket after including the withdrawal
• Ulwati can help compare your lump sum and IRP5s to calculate if you owe or are due a refund

4. I have a lump sum directive but it does not appear on my return. What should I do?

• Tick “Yes” to the lump sum income question in the ITR12 Wizard
• Manually capture your directive under code 3907 with directive number and tax withheld
• Ulwati can assist in submitting this correctly

5. I earn rental income and have expenses. How do I declare them?

• Use the “Local Business, Trade, Rental” section on your ITR12
• Capture your rental income and deductible expenses (e.g., rates, levies, bond interest)
• Keep supporting documents for verification
• Ulwati can assist in submitting this correctly

6. I work from home. Can I claim expenses?

• Yes, if part of your home is exclusively used for work
• You may claim a portion of rent, electricity, cleaning, etc.
• Must have a letter from your employer confirming the work-from-home setup
• Ulwati can assist in submitting this correctly

7. I have not submitted tax returns for 10 years. What are the consequences?

• You may incur admin penalties (R250–R16,000/month)
• File outstanding returns via eFiling or request SARS help
• Ulwati can assist with historical filing and penalty mitigation

8. I have a travel allowance. How do I keep a logbook?

• Use SARS’s travel logbook template (Excel or online)
• Record dates, trip purpose, start/end odometer readings, and km travelled
• Keep proof of business-related trips and vehicle expenses
• Ulwati can assist in submitting this correctly

9. I forgot my SARS eFiling username or password. How do I reset it?

·        Try using the “Forgot Password” or “Forgot Username” options on www.sarsefiling.co.za

·        If your info can’t be verified, use the SARS Online Query System (SOQS):
https://tools.sars.gov.za/soqs/

·        You can also call SARS at 0800 00 7277 or contact Ulwati for help.

10. I don not have an eFiling profile. How do I register?

·        Visit www.sarsefiling.co.za

·        Click “Register”

·        Enter your personal and tax details as per your SARS registration

·        Ulwati can assist in setting up and activating your profile

BUSINESS / COMPANY TAX FAQ

1. What happens if my CIPC company is dormant or deregistered but I do not file returns?

• You must still file tax returns with SARS (even NIL ones)
• If not, penalties from R250 to R16,000/month will apply until deregistered at SARS
• Ulwati assists file NIL returns and with SARS deregistration for closed businesses

2. How do I deregister a company income tax number?

• Submit a formal deregistration letter to SARS with:
• CIPC deregistration confirmation
• Company registration docs
• Director ID
• Use SARS Online Query System to submit
• Ulwati can assist in submitting this correctly

3. What if my business tax profile is linked to another practitioner?

• Go to “Manage Tax Types” → “Remove Tax Practitioner Access”
• Ulwati can then request shared/full access and assist you

4. How do I claim Employment Tax Incentive (ETI) as an employer?

• If your employees:
• Are aged 18–29
• Earn less than R6,500/month
• Have valid ID or asylum permits
• You can reduce PAYE monthly via EMP201 return
• Ulwati will help calculate and apply ETI correctly to save your business money

5. How do I submit a Request for Remission (RFR) of penalties or interest or debt?

• Use eFiling → “Returns” → “Disputes” → “Request Remission”
• If not available, use SARS Online Query System or email penaltyrfr@sars.gov.za
• What if my RFR is rejected?

o   Submit a Notice of Objection (NOO) within 30 business days

o   If rejected again, you can escalate via Notice of Appeal (NOA) or ADR

6. How do I know if I should register for provisional tax, and how do I submit my IRP6? What documents are needed?

• Register if you earn income other than a salary with PAYE, or if your total taxable income is above the SARS threshold. Such as rental income, investment income, freelance or business income
• Submit IRP6 on SARS eFiling with your estimated income and expenses.
• Keep payslips, rental/business income & expense records, and other income estimates ready.
• Ulwati can assist with the registration and submitting this correctly

 7. How do I determine if I am an independent contractor/consultant and what are my tax obligations?

• You are likely an independent contractor if you control your work, use your own tools, and work for multiple clients.
• If you mainly work for one client under their control, you may be seen as an employee.
• Independent contractors must register for provisional tax, submit IRP6 twice a year, keep records, and register for VAT if turnover exceeds R1 million.
• Ulwati can assist with the registration and submitting this correctly

8. How does Ulwati request shared access to my SARS profile?

• We log in via our tax practitioner account
• Submit access request for your tax number
• You approve via eFiling under “User → Authorisation Requests”

9. Our company has no eFiling profile. How do we register and receive Tax Compliance Certificate (TCS)?

·        Go to www.sarsefiling.co.za

·        Select “Register” and follow the steps using the company’s tax number and registration details

·        You will need company documents and director ID

·        Once the profile is registered and tax type activivate, can request the Tax Compliance Certificate (TCS)

·        Ulwati can handle registration and profile linking on your behalf
CIPC Compliance & Company Secretarial Services

Q: Why do I need to stay compliant with CIPC if my company is not trading?
A: Even if your company is dormant, CIPC still requires annual return submissions, beneficial ownership declarations, and updated company records. Failure to comply can lead to deregistration, penalties, and difficulty reinstating your company in the future. Ulwati ensures your records are always up to date to avoid these issues.

Taxation Services

Q: What happens if I miss the SARS tax return deadline?
A: Missing deadlines can result in administrative penalties, interest on outstanding amounts, and possible legal enforcement by SARS. Ulwati ensures your ITR12, ITR14, and IRP6 submissions are on time, accurate, and compliant, and we handle disputes if SARS raises queries.

Bookkeeping & Financial Reporting

Q: Why do I need monthly bookkeeping if I only submit financials once a year?
A: Regular bookkeeping ensures your records are accurate and up to date, making annual financial statement preparation easier and helping you monitor business performance. It also reduces the risk of tax penalties, audit issues, and missed deductions.

Payroll & HR Compliance

Q: Do I still need to submit PAYE, UIF, and SDL if I have only one employee?
A: Yes. All registered employers must submit EMP201 and EMP501 returns regardless of the number of employees. Non-compliance can result in SARS penalties and interest. Ulwati processes your payroll, generates payslips, and submits all statutory returns on time.

VAT Services

Q: Can I claim VAT back on all my purchases?
A: You can only claim VAT on expenses directly related to taxable business activities and supported by valid tax invoices. Ulwati reviews your VAT claims to ensure compliance and helps you avoid SARS disallowances during audits.

Business Process Governance, Risk & Control

Q: How does business process governance benefit my small business?
A: It ensures that your operations run efficiently, risks are managed, compliance is maintained, and resources are optimally used. Ulwati helps design, implement, and monitor processes so you can scale sustainably while avoiding costly mistakes.