If you recently hit a new tax bracket or you started freelancing, you may be aware of your new tax filing responsibilities. You could do this yourself, or you could hire someone to do it for you.
If you decide to go with the latter, you may wonder how much this would cost you. We have a look at the role of a tax practitioner in this regard, as well as how much this service will set you back.
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The role of a tax practitioner
Filing your own taxes can be daunting. It involves filling in numerous, complex forms and doing a lot of math. This is why many people hire a professional to take care of this task for them.
Marissa Vorster, accountant at Taxless, says that a typical tax practitioner completes SARS returns on behalf of third parties, such as individuals and businesses.
By law, they need to be registered with an approved industry body, such as the South African Institute of Tax Practitioners (SAIT), and they must have an NQF level 4 qualification.
READ MORE: How to choose a tax practitioner – ask these questions
How much will this service cost?
The cost of a tax practitioner is not covered by the government – although you can claim the fees as a tax deduction - and they don’t offer their services for free. If you would like to ensure your taxes are filed professionally, you will have to pay for it.
“Depending on the length and the intensity of the business or individual’s taxes, the cost of a tax practitioner can range anywhere from R1,000 to R10,000,” says Vorster.
It’s prudent to gather at least three quotes from tax practitioners before you choose the right one for you. This will ensure you get an idea of the bracket in which your unique tax needs falls.
It’s important to note that every situation is different, and that you should do your own homework before settling on a tax practitioner and agreeing to their fees.
Have a look at our tax calculator to see how much tax you pay on your salary.