Question 1

Do I need to register for tax as a self-employed builder?

Accepted Answer

Yes. Every person who earns income, including sole traders and sub-contractors, must have a SARS tax number, and you must register as a provisional taxpayer if your income is not subject to PAYE. You can register on eFiling (efiling.sars.gov.za) in under 20 minutes. As a provisional taxpayer you pay estimated tax twice a year, in August and February, using the IRP6 form. The 2026/27 tax year runs 1 March 2026 to 28 February 2027, and missing a deadline triggers penalties and interest.

Question 2

How much tax do I pay as a sole trader earning R600,000 profit in 2026/27?

Accepted Answer

For 2026/27 the first R99,000 of individual taxable income carries no liability because it sits below the tax threshold. The brackets then step up: 18% to R245,100, 26% to R383,100, 31% to R530,200 and 36% above that. On R600,000 of profit after deductions the tax works out at roughly R132,000 once the primary rebate of R17,820 is applied. These are estimates. Claim every legitimate deduction first (vehicle, tools, protective clothing, home office where it applies) and use a registered tax practitioner for the final figure.

Question 3

Do I have to register for VAT?

Accepted Answer

From 1 April 2026, VAT registration is compulsory only once your taxable turnover exceeds R2.3 million in any 12-month period, up from the old R1 million threshold. Voluntary registration is possible from R120,000 of turnover. If you are below R2.3 million you do not have to register, but you also cannot charge VAT or claim input VAT on your purchases. Think carefully before registering voluntarily, because it adds admin and makes your prices effectively 15% higher to clients who are not VAT-registered.

Question 4

What is turnover tax and is it better than normal income tax for a small tradie?

Accepted Answer

Turnover Tax is a simplified system for micro-businesses, taxing your gross turnover instead of your profit. You pay it on every rand of income rather than on what is left after expenses, so it only makes sense when your profit margin is thin and your business is simple, with no VAT and no complex deductions. Most tradies with healthy margins are better off on normal income tax, where you can claim s11(e) tool depreciation and vehicle costs. The qualifying turnover threshold and the band rates change periodically, so confirm the current figures on the SARS turnover tax page before you decide.

Question 5

Can I claim my bakkie as a tax deduction?

Accepted Answer

Yes, if it is used for business. You have two options. The actual-cost method lets you claim the business-use percentage of all running costs (fuel, insurance, maintenance, finance charges) plus s11(e) depreciation over five years. The travel-allowance method uses a fixed-cost table based on the vehicle value and your annual kilometres. Either way you MUST keep a daily logbook recording each business trip with the date, destination, odometer readings and purpose. Without a logbook, SARS will deny the deduction entirely.

Question 6

What tools and equipment can I write off for tax?

Accepted Answer

Under s11(e) of the Income Tax Act you can deduct the annual depreciation of tools, machinery, scaffolding, computers and other equipment used in your trade. SARS sets the write-off periods in Binding General Ruling 7, for example three years for hand and power tools, five years for vehicles and three years for computers. Assets costing less than R7,000 can be written off in full in the year you buy them. Keep your purchase invoices and record everything in a fixed-asset register.

Question 7

How do I get a Tax Compliance Status (TCS) PIN?

Accepted Answer

Log in to eFiling at efiling.sars.gov.za and go to Tax Status, then Tax Compliance Status. If your returns are filed and your amounts are paid, SARS generates a PIN on screen straight away. You share only the PIN, never your personal login. Your client, CIDB or NHBRC enters it on the SARS verification portal to check your status without seeing your private data. If the PIN shows non-compliant, fix any outstanding returns or payments first, then request it again.

Question 8

Do I have to pay UIF and PAYE for my guys?

Accepted Answer

Yes, if they are employees rather than genuine independent contractors. From each employee's wages you deduct PAYE using the SARS tax tables and 1% UIF, and you add a further 1% UIF as the employer. If your annual payroll exceeds R500,000 you also add 1% SDL. Declare and pay all three on a single EMP201 return on eFiling by the 7th of each following month. Failing to register as an employer or to pay PAYE is a criminal offence. The UIF monthly remuneration cap is R17,712.

Question 9

What happens if I do not submit my provisional tax returns on time?

Accepted Answer

Two different penalties can bite, so do not confuse them. If you underestimate your taxable income on a provisional return, SARS can raise an underestimation penalty of up to 20% on the shortfall. Separately, late payment of an amount that is due attracts a penalty of around 10% plus interest at the prescribed rate. If you skip the IRP6 altogether, SARS can estimate your income and raise a notional assessment that is usually far higher than your real tax. Submit and pay even if you cannot pay in full, because a partially paid return reduces the penalty on the portion you have paid.

Question 10

Can I deduct retirement annuity contributions on my tax return?

Accepted Answer

Yes. Self-employed tradies can deduct retirement annuity contributions up to the lower of 27.5% of taxable income or R430,000 per year for 2026/27. This is one of the biggest legal deductions available to a sole trader, taken off your taxable income before your tax is worked out. Any excess above the cap carries over to the next tax year. Get a Section 11F tax certificate from your RA provider and capture it on your ITR12.

Question 11

My client has not paid my invoice. What can I do?

Accepted Answer

Start with a formal letter of demand, sent by email with a read receipt and by registered post, giving 7 to 14 days to pay. If it is still unpaid and the amount is R20,000 or less, claim in the Small Claims Court, where there are no lawyers and you present your own case at low cost. For larger amounts, issue summons in the Magistrate's Court (up to R400,000) or the High Court. Act quickly, because most contract debts prescribe after three years, and keep every invoice, message and delivery note as evidence.

Question 12

How do I use the Small Claims Court to chase a client?

Accepted Answer

The Small Claims Court hears civil claims up to R20,000, and you appear as the plaintiff with no legal representation allowed. First send a letter of demand. If it is ignored, go to the clerk of your nearest Magistrate's Court, complete the forms, and the clerk issues a summons to be served on the defendant. Attend court on the hearing date with your invoices, agreements (even WhatsApp messages) and photos. The commissioner's judgment is enforceable, and there is only a small filing fee. The R20,000 limit is under review and may rise, so check the current figure before you file.

Question 13

What is retention and when do I get my retention money back?

Accepted Answer

Retention is a percentage, typically 5% to 10%, that the employer holds back from each payment certificate as security against defects. Under the JBCC contract, half is released at the Practical Completion Certificate and the other half at the Final Completion Certificate, which follows the Defects Liability Period of around 90 days after practical completion. Always state the retention percentage and the release dates in your written contract. If retention is not paid once the certificate is issued, it becomes an overdue debt you can claim with interest.

Question 14

Can I put a lien on a property if I have not been paid?

Accepted Answer

Yes, a builder's lien is a common-law right to hold on to the property you improved until you are paid. The critical rule is that you must stay in continuous possession of the property to keep the lien, so the moment you leave the site you generally lose it. In practice this usually means keeping the gate locked and not handing over keys, but the legal position is contested, so get advice from an attorney before relying on it. The lien covers the value of your labour and materials, not penalties. This area should be confirmed with a lawyer for your specific facts.

Question 15

What is prescription and does my old unpaid invoice still count?

Accepted Answer

Under the Prescription Act 68 of 1969, most contractual debts prescribe, meaning they expire, three years after the debt became due and payable. So if a client has owed you money for more than three years and you have not taken legal steps to recover it, and the debtor has not acknowledged the debt in writing during that time, you may have lost the right to sue. The clock usually starts on the invoice due date. Sending a letter of demand early helps interrupt prescription and protect your claim.

Question 16

My main contractor is in business rescue and has not paid me. What are my options?

Accepted Answer

When a company enters business rescue, a legal moratorium freezes all debt recovery against it, including yours. Your route is to register your claim formally with the business rescue practitioner within the set period, then attend the meeting of creditors and vote on the rescue plan. If the plan is adopted you receive the agreed percentage of your claim, which is often only cents in the rand. If the rescue fails and the company is liquidated, you join the queue of unsecured creditors behind SARS and secured lenders. Get legal advice urgently.

Question 17

What is a variation order and do I have to do extra work without one?

Accepted Answer

No, you should not do extra work without a written Variation Order or Contract Instruction from the principal agent or client. Without written authorisation it is very hard to prove you are owed the extra money, and verbal instructions are a trap. If a client insists on urgent extra work, confirm it in writing the same day along the lines of, I am confirming your instruction to do X at an additional cost of about R-amount. Submit a formal variation request, and if they refuse to issue one, stop and seek legal advice.

Question 18

How do I claim an Extension of Time on a construction project?

Accepted Answer

An Extension of Time adds to your completion date when the delay is caused by an employer-risk event, such as late design information, employer variations, force majeure or exceptional weather. Give written notice as soon as you become aware of the delay, because most contracts have strict notice windows of 14 to 28 days and missing them can cost you the entitlement. Then submit a detailed claim showing the impact on your programme. Remember that an Extension of Time only moves the completion date, so you need a separate prolongation claim for your time-related costs.

Question 19

How do I register with the CIDB and what grade can I get starting out?

Accepted Answer

Register online at cidb.org.za. Starting out you will normally achieve Grade 1, the entry level, which needs only administrative compliance: CIPC registration, a valid tax clearance (TCS PIN), a B-BBEE certificate or affidavit, and proof of business address. No financial statements or track record are required at Grade 1. Higher grades need a track record on the Register of Projects and financial capacity, and the exact turnover bands and fees for each grade change from time to time. Confirm the current grade values and fee schedule on cidb.org.za before you apply.

Question 20

What documents do I need to tender for a government job?

Accepted Answer

Most government tenders need the same core pack: a valid CSD supplier registration with your MAAA number, a valid Tax Compliance Status PIN from SARS, CIDB registration at the required grade and works category, a B-BBEE certificate or sworn affidavit, the completed SBD forms (SBD 4, SBD 6.1, SBD 8 and SBD 9), and a COIDA Letter of Good Standing. Keep certified copies of all IDs and company documents ready. Start gathering these months before a tender appears, because a missing document can disqualify an otherwise strong bid.

Question 21

Do I need a B-BBEE certificate and what level am I as a small business?

Accepted Answer

Almost certainly, because government tenders and large-corporate supply chains expect one. If your annual turnover is below R10 million you are an Exempted Micro Enterprise (EME) and qualify on a sworn affidavit signed before a commissioner of oaths, with no expensive audit. In the construction sector the recognition level depends on Black ownership, and a business that is more than 51% Black-owned, or Black women-owned, reaches a higher level. Renew the affidavit every year. Turnover between R10 million and R50 million makes you a Qualifying Small Enterprise needing accredited verification.

Question 22

How do I register my building company with NHBRC?

Accepted Answer

Apply online at the NHBRC eServices portal. You will generally need to provide your company registration, SARS tax compliance (TCS PIN), certified director IDs, a bank confirmation letter and proof of business address, and pay the application and annual membership fees. There is a registration requirement and a technical assessment step before you are fully registered, and processing takes a few weeks. NHBRC eligibility rules can depend on your business structure, so confirm directly with the NHBRC whether your set-up qualifies. Remember you must also enrol every new home separately, at least 15 days before construction starts.

Question 23

What is the 80/20 rule in government tenders?

Accepted Answer

Under the Preferential Procurement Policy Framework Act, tenders valued between R110,000 and R50 million use the 80/20 system: 80 points for price (the cheapest compliant bid scores 80 and others proportionally less) and 20 points for B-BBEE level, where Level 1 earns the full 20. The highest total out of 100 wins, which is not always the cheapest bid. For tenders above R50 million it switches to 90/10, with 90 points for price and 10 for B-BBEE. This is why your B-BBEE affidavit matters even as a micro contractor.

Question 24

Do I need to register on the CSD to work for government?

Accepted Answer

Yes. Every supplier to national and provincial government must be registered on the Central Supplier Database at csd.gov.za. Registration is free and open to individuals, sole proprietors and companies, and you receive a unique MAAA number to quote on all government invoices and tender submissions. Keep your CSD profile current, including tax clearance, banking details and B-BBEE status, because the system verifies automatically against SARS and other databases. Without a valid CSD profile, government cannot legally pay you.

Question 25

How do I register with COIDA and get a Letter of Good Standing?

Accepted Answer

Register online at cfonline.labour.gov.za using form W.As.2, which gives you a Compensation Fund reference number. Each year between 1 April and 30 June you submit your Return of Earnings, declaring your actual and estimated payroll, and pay the assessed amount. Once the payment reflects, you can download your Letter of Good Standing, which is valid for 12 months. The letter is required for CIDB upgrades, NHBRC, principal contractor appointment and many private clients. Many building-industry employers use the approved private insurer FEM instead of the state fund.

Question 26

What is the CIDB Register of Projects and why does it matter for grading upgrades?

Accepted Answer

The Register of Projects is the CIDB database of construction contracts awarded to registered contractors, recording the employer, project value and dates. When you apply to upgrade your grade, the CIDB checks your track record, such as your largest single contract in the past five years, against this register. If a completed project is not on the register it may not count towards your upgrade. For public-sector work the client must register the contract, while for private work you can self-register, so check the register after each project.

Question 27

What is the minimum wage I must pay my workers in 2026?

Accepted Answer

The National Minimum Wage is R30.23 per ordinary hour worked from 1 March 2026, and it applies to all workers in all sectors, including farm and domestic workers. Expanded Public Works Programme workers earn R16.62 per hour. You cannot pay below the NMW by contract or by agreement. As a rough guide, that is about R241.84 for an 8-hour day. Bargaining council agreements, such as those in the building and electrical sectors, usually set rates above the NMW for those areas, so check whether one binds you.

Question 28

How many hours can my worker work per day before I owe overtime?

Accepted Answer

Under the BCEA, ordinary hours are capped at 9 hours a day for a 5-day week, or 8 hours a day across more days, and 45 hours a week. Overtime must be agreed in writing, is limited to 10 hours a week, and is paid at 1.5 times the normal wage, or 2 times on Sundays and public holidays. These protections apply to employees earning below the BCEA earnings threshold of R269,600.90 per year, which applies from 1 May 2026. Employees above that threshold can work reasonable hours by agreement without mandatory overtime pay.

Question 29

How do I properly dismiss a worker to avoid an unfair dismissal claim at the CCMA?

Accepted Answer

A dismissal must be both substantively fair, meaning there is a valid reason such as misconduct, incapacity or operational requirements, and procedurally fair, meaning a proper process was followed. For misconduct, issue a written notice of the allegation, hold a disciplinary hearing where the employee can respond and be represented by a fellow worker or union rep, then give a written outcome. Keep written records of everything. If the employee refers the matter to the CCMA and you cannot prove both fairness tests, you can be ordered to reinstate or to pay compensation of up to 12 months' remuneration.

Question 30

Do I need to register for COIDA if I have just one worker?

Accepted Answer

Yes. Anyone who employs even one worker must register with COIDA, the Compensation Fund, under the Compensation for Occupational Injuries and Diseases Act 130 of 1993. Register at cfonline.labour.gov.za, then submit an annual Return of Earnings and pay your assessed levy. In return, a worker injured on the job or who contracts an occupational disease is compensated by the fund, without suing you personally. The Letter of Good Standing that proves your registration is required by the CIDB and NHBRC.

Question 31

Can I use sub-contractors to avoid paying UIF and PAYE?

Accepted Answer

Only if they are genuinely independent contractors and not simply your employees under another name. The CCMA and SARS both apply the dominant impression test: if you control when, where and how the work is done, if the person works exclusively for you, and if they carry no real financial risk, they are likely an employee whatever the contract says. The LRA also deems labour-broker workers placed for more than three months, while earning below the BCEA threshold, to be employees of the client. Getting this wrong means back PAYE, UIF and penalties.

Question 32

What are my obligations under the BCEA for payslips and leave?

Accepted Answer

For employees below the R269,600.90 threshold the BCEA requires you to issue a written payslip each payday showing earnings, deductions and net pay. Annual leave is 21 consecutive days, which is 15 working days on a 5-day week, per year. Sick leave is 30 days on full pay in every three-year cycle, and the first two days taken in the cycle can require a medical certificate. Family responsibility leave is 3 days a year, maternity leave is 4 months (with a possible UIF benefit), and notice periods run from 1 week to 4 weeks depending on length of service.

Question 33

Are workers on my site covered by a bargaining council agreement even if I never signed one?

Accepted Answer

Possibly yes. If the Minister of Employment and Labour has extended a bargaining council agreement, such as one from the building industry or electrical industry council, to bind all employers and employees in that sector and area, then you are bound whether or not you signed it. Check with your regional building-industry association or the relevant bargaining council whether an extension applies in your province and trade. Ignoring an extended agreement can lead to back-pay awards against you.

Question 34

What health and safety documents do I need on a construction site?

Accepted Answer

Under the OHS Act 85 of 1993 and the Construction Regulations 2014, as principal contractor you must keep a Health and Safety File on site at all times. It should hold the OHS Act and Construction Regulations, a baseline risk assessment, the H&S plan approved by the client before work starts, a fall protection plan where there is work at height, induction and competency records, safe work procedures for hazardous tasks, machinery inspection registers, an incident register, and your sub-contractors' own safety files. Inspectors can demand to see the file on the spot.

Question 35

An inspector came to my site and issued a prohibition notice. What do I do?

Accepted Answer

A prohibition notice means work must stop immediately on the identified activity, and you cannot ignore it or appeal it just to buy time, because continuing is a criminal offence under s35 of the OHS Act. Stop the specific work the notice covers, read it carefully to understand the risk and what must be fixed, and remedy the hazard, which you can often do the same or next day. Then contact the inspector in writing to confirm the issue is resolved and request a re-inspection to have the notice lifted. Keep copies of all correspondence.

Question 36

When must I report a site accident to the Department of Employment and Labour?

Accepted Answer

Keep two separate duties apart. A serious incident, such as a fatality, a worker injured so they cannot work for more than 14 days, or a dangerous occurrence, must be reported to the DEL inspector under s24 of the OHS Act, with fatalities and dangerous occurrences reported as soon as possible. Separately, to claim compensation for an injured worker, you lodge the COIDA claim forms, the WCL2 employer's report and the WCL4 medical report, with the Compensation Fund. The DEL incident report and the Compensation Fund claim are different processes, so do both and record the incident in your site register.

Question 37

Do I need a SACPCMP-registered health and safety officer on my site?

Accepted Answer

Not automatically on every site, but the Construction Regulations require a competent person to carry out the health and safety management functions. On larger projects above certain thresholds and involving multiple contractors, the client must appoint a construction health and safety agent registered with the SACPCMP. As principal contractor you must appoint your own site H&S representative, and on smaller sites you can fill this role if you have the right training and experience. The exact threshold that triggers a mandatory SACPCMP appointment is best confirmed against the client's H&S specification and the current regulations.

Question 38

What is a fall protection plan and when do I need one?

Accepted Answer

A fall protection plan is a written document required by Construction Regulation 10 whenever anyone on your site works at height, which in practice starts at around 2 metres, including standing on a ladder. The plan must identify all fall hazards, specify control measures such as guardrails, safety nets, lifelines and harnesses, name the competent person responsible, and confirm that workers have been trained and equipped. Prepare it before any work at height begins and update it whenever conditions change. Inspectors look closely for fall protection on roofing, scaffolding and formwork.

Question 39

Can the client be held liable for a site accident?

Accepted Answer

Yes. Under the OHS Act and Construction Regulations the client, meaning the building owner or developer, carries primary responsibility for properly appointing the principal contractor and ensuring health and safety is managed. If the client fails to prepare a H&S specification, check the H&S plan, or appoint a competent principal contractor, they can be prosecuted. After a serious incident both the client and the principal contractor can face criminal charges and civil claims. Always get written proof that you, as principal contractor, received an approved H&S specification from the client.

Question 40

Do I need a Certificate of Compliance (CoC) for every electrical job?

Accepted Answer

A CoC is legally required when a new electrical installation is done, when an existing installation is substantially altered, when a property is sold, and when a new connection is taken over. Minor repairs such as replacing a light switch do not need a fresh full CoC, but they must still be done by a registered electrician. The CoC confirms compliance with SANS 10142-1, the wiring code, and must be signed by a registered Installation Electrician or Master Installation Electrician. An electrician holding only a single-phase wireman's licence cannot issue three-phase CoCs.

Question 41

What licence do I need to do electrical installation work legally?

Accepted Answer

You need a wireman's licence issued by the Department of Employment and Labour. There are three categories: single-phase only, which handles domestic circuits; three-phase, for commercial and industrial work; and Master Installation Electrician, who can manage projects, employ other electricians and supervise. To qualify you need a trade test pass plus the relevant practical experience, and you apply through the DEL. Without a valid wireman's licence you cannot legally perform electrical installation work or sign a CoC.

Question 42

Do I need PIRB registration to do plumbing work legally?

Accepted Answer

Yes. The Plumbing Industry Registration Board is the statutory body for plumbing, and to issue a plumbing Certificate of Compliance, which is required for new installations, property sales and alterations, you must be registered as a plumber or plumbing contractor with the PIRB. Registration requires passing the national trade test and keeping up your annual continuing professional development to stay registered. Work done by an unregistered plumber is not covered by the CoC regime and may be unlawful.

Question 43

My client wants a gas installation. What do I need?

Accepted Answer

For LP-gas installations, the most common type, you must be registered with SAQCC Gas, the South African Qualification and Certification Committee for Gas. The installation must comply with SANS 10087, and a gas CoC must be signed by a SAQCC Gas-registered person. The steps are to get your gas qualification, register with SAQCC Gas, do the installation to SANS 10087, then test and certify by signing the CoC. SAQCC Gas requires annual continuing professional development, and unregistered gas work is both illegal and dangerous, with non-compliant installers referred to the DEL.

Question 44

Can I still claim the solar panel tax rebate for installing rooftop solar?

Accepted Answer

No. The 25% individual solar panel rebate under Section 6C is dead. It ran for the 2023/24 tax year only, from 1 March 2023 to 29 February 2024, letting individuals claim back 25% of the cost of new panels up to R15,000, and it was never extended. There is no equivalent rebate now. The live incentive that remains is Eskom's SSEG registration fee waiver, which waives registration fees and provides a free smart meter for eligible residential systems up to 50 kVA until 30 September 2026. Confirm with your client that no panel rebate is available for systems installed after 29 February 2024.

Question 45

How do I register a solar installation with Eskom and what does it cost?

Accepted Answer

All grid-tied solar systems, even ones that do not export, must be registered with the local electricity distributor. For Eskom-supplied properties you submit an online application through the Eskom small-scale embedded generation pages, with the documents normally being an electrical CoC signed by a registered IE or MIE, an NRS 097-2-1 inverter type-test certificate, and an embedded generation installation test report. Until 30 September 2026 Eskom is waiving SSEG registration fees and providing a free smart meter for eligible residential systems up to 50 kVA. After that date fees may apply, so confirm before you quote a client.

Question 46

What insurance does a construction contractor need?

Accepted Answer

At a minimum a contractor should carry Contractors All Risk, which covers the works, materials on site and third-party liability during construction, and Plant All Risk, which covers your own tools, vehicles and equipment. Public liability cover, often bundled into the CAR policy, protects against injury to third parties or damage to neighbouring property. COIDA registration and a Letter of Good Standing are compulsory cover for worker injuries. For government contracts you also need a SASRIA add-on for riot, strike and civil-unrest damage, and some clients will require a bank performance guarantee.

Question 47

What does SASRIA cover and do I need it?

Accepted Answer

SASRIA, the South African Special Risks Insurance Association, is a state-owned insurer that covers damage and loss caused by political and social risks, including riots, strikes, civil commotion, public disorder, labour unrest and terrorism. Standard commercial insurers do not cover these events. SASRIA is usually a small add-on premium to your CAR or commercial policy and is issued through your normal broker alongside your main cover. It is compulsory on many government construction contracts and strongly recommended for any urban site.

Question 48

What is a performance guarantee and when does a client ask for one?

Accepted Answer

A performance guarantee is a document from a bank or registered surety confirming that if you abandon the project or materially breach the contract, the guarantor will pay the employer up to the guaranteed amount, typically about 10% of the contract value. Clients usually ask for one on formal contracts above roughly R1 million to R2 million, and it is standard under JBCC and NEC contracts. Getting one means your bank assesses your creditworthiness, so keep your account in good standing. The client can only call on it for a proven material breach, not just a dispute.

Question 49

Does my standard business insurance cover construction site accidents?

Accepted Answer

Not automatically. Standard commercial property insurance covers your office and contents, not construction sites. You need Contractors All Risk specifically for the works and third-party liability, employer's liability as a top-up above the COIDA benefit cap, and professional indemnity if you also provide design or project management services. Disclose your site activities fully to your insurer, because failing to mention that you run a construction business can void all your claims. Review your policy each year as project values change.

Question 50

What is the two-pot retirement system and how does it affect my RA?

Accepted Answer

From 1 September 2024, all retirement fund contributions, including retirement annuities, are split. One-third goes to a savings component you can reach in emergencies, with one withdrawal per tax year, a minimum of R2,000, taxed as income at your marginal rate. The other two-thirds go to a retirement component that stays locked until retirement. The savings pot gives a stretched tradie legitimate emergency access without resigning, but every withdrawal shrinks your retirement nest egg and is taxed, so only use it in a real emergency.

Question 51

How much can I put into a retirement annuity and get a tax deduction in 2026/27?

Accepted Answer

For the 2026/27 tax year you can deduct retirement annuity contributions equal to the lower of 27.5% of taxable income or R430,000 per year. Any excess above the cap carries over and can be deducted in future years. As a self-employed tradie your RA is the equivalent of a company pension, and maximising it cuts your taxable income meaningfully. For example, on R600,000 of profit a contribution of R165,000 reduces the income on which you are taxed. Get a Section 11F certificate from your RA provider at the end of the tax year.

Question 52

I am drowning in debt. What is debt review and how does it work?

Accepted Answer

Debt review, also called debt counselling, is a legal process under the National Credit Act 34 of 2005. A registered NCR debt counsellor assesses your income and debts, negotiates reduced repayments and interest with creditors, and obtains a court order. While under debt review, creditors cannot sue you, repossess your vehicle or garnish your wages, and you pay a single monthly instalment to a payment distribution agency. Your credit record is flagged until all the debt is settled and the counsellor issues a clearance certificate. Find registered counsellors at ncr.org.za.

Question 53

What is POPIA and do I have to comply as a one-person building company?

Accepted Answer

Yes. The Protection of Personal Information Act 4 of 2013 applies to any business, even a sole trader, that collects, stores, uses or shares other people's personal information, and as a contractor you hold client names, addresses, phone numbers and payment details. POPIA requires you to appoint an information officer, which is you as the sole director, to register with the Information Regulator at inforegulator.org.za, to have a basic privacy policy explaining what data you collect and why, and to keep that data secure rather than leaving client files open on an unlocked computer or shared group.

Question 54

What are the tax implications of the SASSA old age grant for my parents helping on site?

Accepted Answer

SASSA grants are means-tested government grants and are not subject to income tax. As at April 2026 the Older Persons grant is R2,400 a month, rising to R2,420 for those aged 75 and over, and the Child Support Grant is R580. If you pay your parents wages for work done, even informally, those wages are taxable employment income rather than a grant, and the extra income could affect their grant if it pushes them over the means test. Confirm the current grant amounts and means-test thresholds at sassa.gov.za, and get advice from SASSA before setting up any payment arrangement.

Question 55

Should I register a (Pty) Ltd or operate as a sole trader?

Accepted Answer

It depends on your risk and growth plans. As a sole trader you have simpler, cheaper compliance, but you are personally liable for all business debts and your personal assets are exposed. A (Pty) Ltd gives limited liability that protects your personal assets, is often seen as more credible by large clients and government, and can access Small Business Corporation tax rates, where the first R99,000 of taxable income is taxed at 0% for 2026/27, but it requires CIPC annual returns and proper bookkeeping. Many tradies start as a sole trader, then register a (Pty) Ltd once they grow or start winning government tenders. Note that NHBRC registration typically requires a company.

The questions South African tradespeople actually ask - with straight answers.

Tax & SARS

Getting Paid & Disputes

Registrations & Tenders

Employing People

H&S & Site Law

CoCs & Trade Licensing

Insurance

Money & Life

Important disclaimer