Any entrepreneur in the start-up phase will tell you that running a new business is often a cause of stress and anxiety, and not a carefree escape from the nine-to-five that outsiders might perceive it to be.
It seems that the writing is on the wall for the traditional nine to five job. The world is becoming increasingly agile and flexible as employees juggle multiple jobs and incomes. You might call them hustlers, moonlighters or side jobbers but one thing is certain, there are more of them in the market today than ever before.
Providing an employee with retirement benefits, either in the form of a pension fund or provident fund (there is a distinction between these two, but for the purposes of this article we will refer to the monies that are paid out to a member of a retirement benefit scheme, as a pension benefit), is commonplace, but not compulsory in terms of South African law.
An amendment to the SA Income Tax Act becomes effective in March 2020, and has hard-hitting consequences for South Africans working outside SA. It requires that SA tax residents spending more than 183 days abroad (of which 60 days are consecutive) pay SA tax of up to 45% of their foreign employment income once it exceeds R1m per annum.
Questions to consider when running your own business.
Suretyship Protection/ Contingent Liability
•Are you standing surety for loan/debt affected by the business?
•Are you aware of the impact if the loan/debt cannot be repaid?
Loan Account Protection
•Do you have a loan account?
Is the business able to repay the loan account on your death or disability?