J D Hill & Company Newsletter

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May 2020 | COVID-19 and Directors: Your Duties and Liabilities in the Coronavirus Crisis

Your focus as a director right now will no doubt be on keeping your business afloat through these trying times. Don’t lose sight however of the fact that the onerous obligations and duties placed on all directors by the Companies Act still apply. Failure to live up to the required standards exposes you not only to a significant risk of personal liability for company debt, but also to criminal prosecution. We recap in summary what the Act requires of you, we discuss the impact of Kin...
Posted: Fri 01 May 2020

April 2020 | COVID-19 Lockdown: Relief Programs for Businesses and SMMEs

The National Lockdown, due to end on 16 April, presents businesses of all sizes with an unprecedented set of existential challenges.  Of course sooner or later this crisis will end, but for now it is a case of survival for many businesses, and particularly for those smaller enterprises forced now to close for 21 days. Don’t despair, help is at hand! We list the various relief initiatives announced to date. The list will change, as will the details of and processes for accessing...
Posted: Wed 01 April 2020

March 2020 | Budget 2020: Some Tax Relief!

The good news is that taxpayers have been given some money back with the Income Tax tables and there are no significant tax increases. Hopefully, this will help the economy to grow as it will encourage consumers to increase expenditure (about 60% of GDP depends on consumer spending).  Company tax has also not been increased and some reforms are mooted ahead of a plan to reduce corporate tax rates.   We end off with some tax tables conveniently summarising what’s new...
Posted: Sun 01 March 2020

February 2020 | Take Advantage of the Venture Capital Company Allowance While You Can

Here's some good news in the form of a way to save tax (a lot of tax), make a good investment, and directly boost both our economy and our SMEs - all in one go. That's where the VCC (Venture Capital Company) Allowance comes in. We'll have a look at the substantial savings you (or your trust or company) can achieve by using the allowance correctly; at how it works both initially and subsequently; at the need to beware of costs; and at how "finding a gem" could give you a (very) substantial af...
Posted: Sat 01 February 2020

January 2020 | What Will The Next Decade Bring Us?

As we settle into 2020 let’s all, with the wise old saying “Failing to plan is planning to fail” in mind, start thinking about not only what the next year or so holds for us, but about what our world could look like in 2030. Of course that means predicting the future, a notoriously difficult exercise at the best of times and perhaps a particularly challenging one in these days of increasingly frenzied change. We can however identify a number of global trends emerging whi...
Posted: Wed 01 January 2020

December 2019 | Sometimes the Best Management Is To Take a Back Seat

Will your business prosper, or will it fail? Your management style will always be a critical factor in deciding that, and the art of successful management requires that you understand when to get actively involved in an issue; and when to take a back seat while your staff team get on with it. But that’s not always easily achieved. Should you join the current fad for “Management By Walking Around”? What do you do about hostile employees? How should you handle criticism?&nbsp...
Posted: Sun 01 December 2019

November 2019 | 5 Reasons To Never Overlook Your Business Plan

Not preparing a comprehensive business plan for your business, and not updating it frequently, is a recipe for disaster.  In fact John Cleese’s “How can I be so stupid?” when recalling his pitch to the BBC for the launch of Monty Python’s Flying Circus – without having a business plan in place - says it all.  Next month we’ll share some thoughts on how to prepare a business plan, but let’s start off this month with a discussion of why th...
Posted: Fri 01 November 2019

October 2019 | A Tip for Anyone with Too Much Debt – Try the ‘Snowball Method’

(Note - if you know (or employ) someone who might benefit from a pointer or two on how to bring their levels of debt under control, please do pass this article on to them.) Being heavily indebted is one of the most stressful and demoralising things a person can experience, and in these hard times a lot of South Africans are struggling to keep their heads above water. High levels of debt are also bad for the country, with 60% of our economy dependent on consumer spen...
Posted: Tue 01 October 2019

September 2019 | Be Ready For SARS Employee Audits

With SARS struggling to meet its revenue targets and individuals carrying the bulk of the tax burden, we can probably expect SARS to increase its audits of employees’ tax returns.  Forewarned being as always forearmed, we discuss the implications for both employees and employers, with suggestions on how employers should have their employees handle queries (whether they do it themselves or through their own tax advisers).  An audit can be a costly, stressful and time-consum...
Posted: Sun 01 September 2019

August 2019 | Don’t Let a Death or Disablement Destroy Your Business

Your business could be in serious trouble if a shareholder suddenly dies, or if a key player in the business is disabled or dies. How can you manage these risks?  A good start is to take out the correct insurance cover upfront. Appropriate policies can both reduce the risks to the business and provide financial assistance to an affected shareholder’s families.  We’ll discuss what “buy/sell insurance” is and what its benefits are, then we’ll have a l...
Posted: Thu 01 August 2019

July 2019 | How Tax Returns Will Be Easier This Year, and Should You File if You Earn Under R500,000?

The dreaded Tax Season is once more upon us, and you’ve probably picked up news of the increased R500,000 personal income tax threshold to replace the previous one of R350,000. What does that mean for you in practice and what are the limitations and provisos applicable? Be careful here - even if you qualify for exemption from having to file a tax return, it might pay you to lodge one anyway. Read on for thoughts on that, plus some useful details on how SARS has (as it puts it) “i...
Posted: Mon 01 July 2019

June 2019 | How You Can Detect Fraud in Your Business

Running a business brings many rewards, but also a host of risks and challenges. One of the more common of those is internal fraud. It can devastate your business and its reputation, undermine staff morale and jeopardise relationships with your suppliers, your investors and the compliance authorities.  The danger is that it can happen to anyone, at any time – no one is immune. Fortunately every business, from the largest corporate to the smallest SME, can reduce its risk of fraud ...
Posted: Sat 01 June 2019

May 2019 | Small Businesses: Make The Most of Your Tax Breaks!

Small businesses face many challenges, not the least of which is the tax burden. Both our high tax rates, and the complexity of our tax compliance system, can be particularly hard on smaller and newer enterprises. Fortunately however, some relief is available to qualifying businesses in the form of both turnover tax for micro businesses, and tax on SBCs (Small Business Corporations).  Don’t be one of the many uninformed taxpayers who miss out on tax breaks like these!&n...
Posted: Wed 01 May 2019

April 2019 | Expat Tax: How Will The Changes Affect You?

South African expatriates have until now enjoyed a “183/60” tax exemption in respect of foreign income. That will change with new legislation recently passed, and forward planning is important here. So if you yourself aren’t a working expatriate but know someone who is (a relative, friend or colleague perhaps) please think of passing this article on.
We look at what the changes are, whether they will affect you, when they will take effect, and what y...
Posted: Mon 01 April 2019

March 2019 | What does Budget 2019 mean for you?

Budget 2019 is important for our economy as a whole, and we must hope that Finance Minister Tito Mboweni’s "It is time for us to sow the seed of renewal and growth" presages a new era of prosperity for us all. But how does Budget 2019 affect you and your business in a practical sense? For a change, relatively few tax adjustments were proposed – we list them for you and discuss their impact. Equally important is our list of taxes that have been left unchanged. We end of...
Posted: Fri 01 March 2019

February 2019 | AI and the Changing Face of Jobs: Good News If We React Now

No one knows for certain what the rise of Artificial Intelligence will actually mean to us as businesses or employees. A common reaction is one of fear – “Will I lose my job to a machine or an algorithm?”, “Will my business be disrupted and destroyed?”, “Should I be throwing more time and resources at looking for the next big AI thing?” and so on. That’s partially a result of all the media hype around how the ever-accelerating Rise of the Robots w...
Posted: Fri 01 February 2019

January 2019 | Interest Rates in 2019 – Which Way Will They Go and Why?

As Nobel Prize-winning physicist Nils Bohr put it, “Prediction is very difficult, especially if it is about the future.” Humorous but true. Nevertheless the question of where interest rates are likely to move in the future affects us all, and businesses and investors in particular would love to have a handle on what to expect. In pursuit of answers we discuss the recent interest rate increase and what we might be able to glean from it by analysing the arguments put forward bot...
Posted: Mon 07 January 2019

December 2018 | Let’s Be Realistic and Positive in 2019

2018 has certainly presented us South Africans with some major challenges. But as we start winding down and reflecting on what the future has in store for us, let’s be sure to keep in mind the many positives we take into the New Year with us. So join us in looking at some of the “big problems” we face, and in asking whether they are in fact as insoluble as we tend to think. The bottom line is this - how can we make meaningful inroads into our problems, and how do we ensu...
Posted: Sat 01 December 2018

November 2018 | Administrative Penalties for Corporate Income Tax To Be Imposed

SA Revenue Services issued correspondence this week advising that administrative penalties are to be imposed from December 2018 for outstanding Corporate Income Tax returns. SA Revenue Services allow 12 months for a return to be filed - i.e. the tax return for year ended February 2017 must be filed by 28th February 2018. With effect from December 2018 SARS intend raising penalties on all outstanding returns at this date.  It is imperative to note that the penalties being imposed rang...
Posted: Thu 01 November 2018

October 2018 | Get the Most Out of Your Audit While Saving Cost

Help your auditors to help you. Work together with them, and prepare properly. That’s the best way to maximise your audit’s value to you and to your business.  Your goal is an audit which gives you assurance that your systems are sound and that your annual financials fairly reflect your economic position, whilst also containing your audit costs. We discuss four ideas on how to achieve this by laying a good base for a smooth audit, followed by another five ideas on how to ...
Posted: Mon 01 October 2018