Navigating the world of taxes can often feel like a daunting task, filled with complicated jargon and endless forms. That’s where having your own tax consultant is worth it’s weight in gold. In this blog, we’ll explore some of the most frequently asked questions about tax consultants, shedding light on their roles, costs, services, and how to find the right one for your needs.
What Does a Tax Consultant Do?
Essentially, tax consultants specialise in providing expert advice on tax-related matters. Think of them as your personal search engine relating to tax laws and regulations. They help individuals and businesses to understand their tax obligations and ensure their compliance at SARS, while also identifying opportunities for tax savings.
If you’re a small business owner, and you’re overwhelmed by the many different tax types and how to file them, a tax consultant would step in to analyse your financial situation, advise on deductible expenses, and assist with filing your returns on efiling. Their expertise can save you money and reduce the risk of audits. Legally your tax practitioner has to stay updated on the latest tax laws and regulations, which means they can provide insights that can significantly impact your financial health, especially in our rapidly changing economy..
How Much Does a Tax Consultant Cost?
The cost of hiring a tax consultant can vary widely, influenced by factors such as the complexity of your financial situation, the consultant’s experience, and geographic location. On average, you might expect to pay anywhere from R 800 to R2 000 per hour, or your consultant could work out a flat rate for each service they provide.
If your return is straightforward you will pay less than if your finances are complicated—maybe involving multiple income sources or claims, investments, or a business that you run in your personal capacity. It’s important to consider the potential savings a good consultant can provide, which often far outweighs their fees. Think of it as an investment in peace of mind and financial clarity.
What Services Do Tax Consultants Offer?
Tax consultants provide a variety of services tailored to meet the diverse needs of their clients. Here are some common offerings:
- Tax Planning: This involves strategizing ahead of time to minimize tax liabilities. A consultant will help you understand your financial situation and make informed decisions that can lead to tax savings. They may refer you to investment brokers to assist in the tax saving opportunities that they can provide you.
- Tax Preparation: Many consultants assist with the actual preparation and filing of tax returns, ensuring that all documentation is accurate and submitted on time, and taking the stress out of having to supply supporting documents to SARS – they will do this on your behalf.
- Audit Support: If you find yourself facing an audit, or need to go to appeal on an objection, a tax consultant can represent you at SARS, helping you to navigate the process and communicating with SARS on your behalf.
- Business Consulting: For businesses, consultants can offer advice on bookkeeping practices and programs, and can advise on what is expected of you in terms of record keeping, document retention periods, and what can be claimed as business expenses and what is considered personal and therefore not deductible.
- Estate Planning: Tax consultants can also assist with estate planning, helping you to structure your assets in such a way as to minimize the tax burden on your heirs.
Each of these services can be tailored specifically to your needs, whether you’re an individual looking to maximize your refund or a business trying to streamline your tax processes.
How Do I Find a Tax Consultant?
There are many places to look up tax consultants in your area, however the best option is to ask family and friends for recommendations. If they believe their consultant is amazing, the chances are you will too.
If your circle can’t assist you, consider checking online directories and the reviews that other people have left about the consultants. Websites like LinkedIn can provide insights into a consultant’s reputation and service quality. Once you’ve narrowed down your options, set a few appointments to see if you connect emotionally with the person you’re considering. This is, after all, a mutual relationship, where trust on both sides is important.
Always consider their qualifications, experience, and the specific services they offer. It is imperative that they are connected to a governing body like SAIT, SAIBA, SAICA or some other affilated institution, as without that link, SARS will not allow them to be a Tax Practitioner, and their advice could be outdated. It’s also wise to discuss fees upfront to avoid any surprises later.
What Are the Requirements for Becoming a Tax Consultant?
Becoming a tax consultant typically requires a combination of education, experience, and registration with a governing body. In addition, a Tax Consultant is required to record a certain number of CPD (Continued Professional Development) points each year, ensuring that they remain up to date with the latest changes to legislation, and thereby ensuring your tax compliance remains intact.
In addition to a diploma or degree, many successful tax consultants pursue additional short courses to increase their knowledge base – for example a higher diploma in tax, or a postgraduate certificate in advanced tax.
Nothing beats experience. If your practitioner has been doing the job for several years, and is up to date on their CPD hours, you can be assured that they will be able to successfully navigate the tax waters on your behalf.
Conclusion
So while taxes can be complicated, understanding the role of a tax consultant and what they can offer you can empower you to make the right decisions for your business. Whether you’re looking to save money, ensure compliance, or simply alleviate the stress of tax season, a qualified tax consultant can be an invaluable resource. Remember, investing in a good tax consultant is not just about paying for services; it’s about securing your financial future and giving you space to focus on your business, not on SARS.