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Differences between Internet Banking and Traditional Banking

The differences between traditional banking and Internet banking on the basis of presence, time, accessibility, security, finance control, expensive, cost, customer service and contact are differentiated as follows.

Basis of Difference Traditional Banking Internet Banking
Presence Banks exist physically for serving the customers, Internet banks do not have physical presence as services are provided online.
Time It consumes a lot of time as customers have to visit banks to carry out bank transactions like — checking bank balances, transferring money from one account to another. It does not consume time as customers do not have to visit banks to check bank balances or to transfer money from one account to another. Customers can access their account readily from anywhere with a computer and internet access.
Accessibility People have to visit banks only during the working hours. Internet banking is available at any time and it provides 24 hours access.
Security Traditional banking does not encounter e-security threats. Online banking is the tempting target for hackers. Security is one of the problems faced by customers in accessing accounts throu h internet.
Finance Control Customers who often travel abroad cannot pay close attention and control of their finances. Customers who often travel abroad can have greater control over their finances.
Expensive Customers have to spend money for visiting banks. Customers do not have to spend money for visiting banks. They can avoid bank charges that may be charged for certain teller transactions or when they pay bills electronically — directly from their account to the merchant. It helps to save money on postal charges.
Cost The cost incurred by traditional banks includes a lot of operating and fixed costs. Such costs are eliminated as the banks do not have physical presence.
Customer Service ln traditional banks, the employees and clerical staff of the bank can attend only few customers at a time. In online banking, the customers do not have to stand in queues to carry out certain bank transactions.
Contact Customers can have face to face contact in traditional banking. Customers can have only electroonic contacts.

For more information please contact our support term at info@fyionline.co.za

HOW DO I PAY?

Do you have outstanding taxes? Do you need help deciding what to do or whom to call?

Taxpayers, both individuals and businesses, are required to be fully tax compliant through on time submission of returns and payments, to avoid penalties and interest being charged.

Top Tip: Not sure when the submission dates are? See a list of Important Dates here.

Important – If the submission date falls on a weekend or public holiday, you need to submit the return/declaration together with your payment, if applicable, by the last business day before the weekend or public holiday.

In instances where taxpayers are not compliant and have outstanding tax debt, the Debt Management department is committed to assisting businesses and individuals to become fully compliant.

If you want to make a payment to SARS, there are a number of options e.g. at a bank, via eFilinga and via EFT. For more detail on payment options, click here.

Top Tip: In addition to the available payment options, Customs payments can also be made at any SARS Customs office, for more information please read SARS Payment Rules.

If you need to change your banking details you can do it:

  • On eFiling of you’re a registered eFiler
  • In person at any SARS branch if you’re not registered with eFiling, or
  • When completing and submitting your Income Tax Return for Individuals (ITR12).

For more information please contact our support term at info@fyionline.co.za

Small businesses

Extremely Profitable Small Business Ideas You Can Use

  1. Courier Business

You can be delivering things through DHL, FedEx, UPS, and other well-known carriers but still be autonomous. All you need is a trusty van and a spotless driver’s license. Of course, your main costs will be those around your vehicle.

  1. Starting A Coffee Shop

The thing about successful coffee shops is that it’s never really about the coffee. This said, probably the most important aspect is the location. If you want to make a living out of this, then make sure your place is located at an advantageous position where there’s constant traffic of people. The next thing you really need to think about is the atmosphere of your coffee shop. The right music, decoration, furniture, and so on.

3-Accounting

If you already have this professional qualification, then you can start local, from the comfort of your home. Local businesses in your area might find it useful to have an accountant just a block away. If you are able to market yourself properly to those around you, then you can start with simple things such as bookkeeping.

4-Man with a Van

If you have a van, then you could be both delivering things and moving homes. You can operate locally and around school campuses where there are students who are constantly moving in and out. Also, as a lone wolf, you will have the advantage against bigger companies who often inflate their rates.

  1. Do you love cooking? Well, then you can fight hunger by making delicious sandwiches for those in a hurry. Now, it doesn’t take Gordon Ramsay’s super-chef skills to make a sandwich but you can be clever about it and perhaps look at a few interesting recipes online. The secret to good sandwiches often lies in custom-made sauces that give amazing flavours to all the ingredients.

6-Online Businesses

Some entertain the idea of working from home. And it has never been easier! You could be selling stuff online, or even make profits off advertising. Are you particularly interested in some topic or do you have an unusual hobby? Then you can easily blog about the things you care about. By putting out great content, you will be able to attract the attention of others with similar interests which means you will be able to make more money by advertising on your website or YouTube channel.

Register for E-filing

How to register

As a registered taxpayer you can sign-up to use the SARS eFiling service which allows you not only to file a return, make payments to SARS or request a tax clearance certificate but also gives you access to many other  benefits via an electronic platform.

To register as an eFiler visit the SARS eFiling website  www.sarsefiling.co.za and click on REGISTER. It should only take you five to ten minutes to go through the six-step process.

Depending on your needs, you can register as an individual taxpayer, a Tax Practitioner or as an Organisation.  SARS will recognise you as an electronic filer once your eFiling registration is complete.

Top Tip: For individuals the account is automatically activated, you don’t have to fax a summary of registration.

Upon registration, SARS will authenticate your registration profile. The outcome of this will be communicated as a status of your eFiling registration. The status of your registration will be sent to your email account or can be accessed on your eFiling profile.

The statuses can either be registration successful, registration rejected or awaiting supporting documents. If the status is not successful, the taxpayer cannot use eFiling and must respond based on the correspondence received. If the registration is rejected, the taxpayer / representative must visit the SARS branch office.

All new SARS eFiling profiles are activated within 48 hours. Where a registration is not approved within the 48 hours, please check for any correspondence from SARS by selecting Home; User and then Pending Registration, for further requirements regarding the processing of your eFiling registration.

eFiling Benefits

eFiling is a free, simple and secure way of interacting with SARS from the comfort and convenience of your home or office.

No more waiting in queues, finding parking or worrying about office hours. Once registered, eFilers can submit returns, view their tax status and make payments to SARS electronically 24 hours a day!

eFilers are also given more time to make their submissions and payments. Individual taxpayers and trusts have more time to submit their returns which means longer to pay any additional income tax. And if you’re a business paying VAT, you get until the last business day of the month to pay it over (rather than the 25th of the month for manual filers)!

You also have a full history of all submissions, payments and electronic correspondence available to you at the click of a button through the innovative reporting tool.

eFilers can also receive SMS and email notifications to remind you when submissions are due.

The simplicity of the process results in fewer errors and creates a quicker processing cycle for individuals and businesses.

Isn’t it time you joined more than 2.7 million individual taxpayers and 350 000 businesses who are enjoying all the ease, convenience and peace-of-mind that eFiling offers?

eFiling offers the facility to submit a variety of tax returns including VAT, PAYE, SDL, UIF, Income Tax, STC and Provisional Tax through the eFiling website.

Online Services

Currently, the following services are available:

  • Pay-As-You-Earn (EMP201 return)
  • Skills Development Levy (included on the EMP201 and EMP501 return)
  • Unemployment Insurance Fund (included on the EMP201 and EMP501 return)(Note: UIF filing is done separately via www.ufiling.gov.za)
  • Value Added Tax (VAT201)
  • Provisional Tax (IRP6)
  • Secondary Tax on Companies (IT56)
  • Personal Income Tax(ITR12)
  • Trusts (IT12R)
  • Advance Tax Ruling (ATR)
  • Change of Personal Details (IT77/RFC)
  • Additional Payments
  • Request for Tax Clearance Certificate
  • Request for Tax Directive
  • Transfer Duty
  • Stamp Duty
  • Security Transfer Tax(STT)
  • Tax Practitioner Registration
  • VAT Vendor Search
  • Notification Tool
  • Tax Calculators
  • Complete history of eFiling usage
  • Customs payments
  • Air Passenger Tax payments

SARS intends to expand the services offered through eFiling substantially as the service matures

For more information please contact our support term at info@fyionline.co.za

LEARN ABOUT TAXES

Taxpayer Education Workshops

Free tax education workshops are presented at most SARS branches across the country by the Branch Operations Engagement team. These workshops cover a wide range of topics and are presented on a regular basis.

The aim is to provide taxpayers with information that would create a basic understanding of  the various tax types, how these taxes work and what is expected of taxpayers in order to be tax compliant at all times.

There are many different types of taxes a person has to pay which include Sales Tax, Income tax, Property Tax, Estate Tax, Excise Tax etc. Some of the tax types are known to everyone while others are not common and tax payers find it difficult to comprehend them. Here is the explanation of two different types of taxes:

Estate taxes

The items which are considered part of the estate include; Cash, securities, insurance, real estate, and business interests. Estate Tax; is the tax on your right to transfer property at your death. This tax is questioned by many tax payers. Tax payers argue that this tax seems like a penalty for dying. This tax is levied on people whose income exceeds $5.34 million. Estate taxes are levied at federal level and state level. At federal level the highest percentage charged is 40%. At state level the rules of this tax are different. The rate of tax is lower and the exemption amount is also low.

Gift taxes

This is almost similar to estate tax, this is the tax levied on the transfer of wealth to someone as a gift, on company shares and cars. The Gift tax is given by one person to another living person. Federal government has a lower exemption for gist tax in comparison to estate tax. Gift taxes are paid by the receipt. All gift of more than $14,000 are taxable. The highest percentage on gift tax is similar to estate tax i.e. 40%.

My Tax Help MD provides the best IRS back tax help and tax settlement services and make the life of its clients easy and relaxed. Having a team of professional tax consultants, we provide diverse IRS tax debt relief service. You can tell us your tax problems and we will come up with the best possible solutions for them.

MOBILE UNIT FUNCTIONS

What services do the Mobile Units offer and the documents needed? Register as a taxpayer and updating or changing bank details:

  • Certified copy of your Identity Document / Passport /Driver’s Licence
  • Original Bank Statement (stamped by the bank)
  • Original Proof of Address

Please note: All these should be in your name and not older than 3 months.

Submit an Income Tax Return:

  • IRP5/IT3(a) certificates
  • IT3(b) certificates in respect of Investment Income
  • Medical Aid certificates and receipts as confirmation of payment
  • Retirement Annuity Fund certificates
  • Travel logbook (receipt of a travel allowance)
  • Any other documentation relating to income received or deductions you want to claim
  • Proof of Identification (identity document /passport / driver’s licence)
  • If married in community of property – spouse’s identity number.

For small businesses:

  • CK Documents 14.1 ,14.3 and 15.1
  • Proof of business address
  • Proof of personal / individual’s address
  • Bank statement or letter
  • Certified ID copy
  • Letter appointing public officer.

Mobile Tax Units (February 2018):

Tax workshops per province (January to March 2018):

Eastern Cape

Free State

Gauteng

KwaZulu-Natal

Limpopo (February & March 2018)

Mpumalanga

Northen Cape

North West

Western Cape

For more information please contact our support term at info@fyionline.co.za

VAT and prices

Entering a VAT registration number

A VAT registration number is alphanumeric and consists of up to 15 characters. The first two letters indicate the respective EU member state, e.g. GB for the United Kingdom or DE for Germany, and must be included when entering your VAT registration number.

How is VAT calculated?

VAT will be calculated in accordance with the VAT regulations in force at the time. See the HM Revenue & Customs website for more information.

Incorrect VAT information

If, as a result of incorrect information being submitted, a sale that should have been inclusive of VAT is made without VAT being charged, BSI reserves the right to recover a sum from the customer equal to the VAT that should have been charged.

VAT invoice

Please note that if you have purchased products in an electronic format (PDFs), you will receive your receipt by email within an hour. For all other items, such as hard copy standards, books, membership or conferences, you will receive your invoice as soon as we have processed and confirmed your order, which can take up to 24 hours.

What information is required on a VAT invoice?

The Value-Added Tax (VAT) invoice must show:

  • the date of issue
  • a unique sequential number
  • the supplier’s full name, address and registration number
  • the customer’s full name and address
  • in the case of a reverse charge, the customer’s VAT number and a notation that a ‘reverse charge applies’. (This does not apply to construction services subject to Relevant Contracts Tax)
  • in the case of a intra-Community supply of goods, the customer’s VAT number and  a notation that this is an ‘intra-Community supply of goods’
  • the quantity and nature of the goods supplied
  • the extent and nature of the services rendered
  • the VAT exclusive unit price
  • the payment received net of VAT
  • the discounts or price reductions
  • the breakdown by the rate of VAT
  • the total VAT payable in respect of the supply
  • the date on which the goods or services were supplied
  • in the case of early payment prior to the completion of the supply, the date on which the payment on account was made, if that date differs from the date of issue of the invoice
  • in the case where a tax representative is liable to pay the VAT in another Member State, the full name and address and the Member State’s VAT number of that representative must be shown.

VAT invoices where the reverse charge applies

In the case of the supply of goods or services for which VAT is accounted for under the reverse charge mechanism, the VAT payable is not displayed on the invoice issued.

VAT invoices where the special schemes applies

Where the margin scheme or the special scheme for auctioneers applies to a supply of goods, the invoice issued must not include an amount of VAT payable.

The invoice in relation to the margin scheme should be endorsed as follows:
Margin scheme — second-hand goods‘.

The invoice in relation to the auctioneer’s scheme should be endorsed as follows:
Margin scheme — auction goods‘.

Foreign currency on a VAT invoice

If you issue an invoice in a foreign currency, it must also show the corresponding figures in Euro.

You should use the selling rate recorded by the Central Bank at the time the invoice is due to be issued.

It is possible, by agreement with Revenue, to use an alternative method for determining the exchange rate, subject to the condition that the agreed method must be used in respect of all your foreign currency transactions.

You should apply to your Revenue Office indicating the exchange rate method that you propose to use.

For more information please contact our support term at info@fyionline.co.za

How does online Banking work.

Banking online or by phone allows you to make banking transactions such as transferring money, paying a bill, checking your balance or setting up a regular payment on your bank or building society’s secure website. Online banking is accessible via a computer/tablet or a mobile phone. Also known as internet banking.

What would I use this for?

You can make a range of payments:

  • Pay a utility bill.
  • Pay a credit card
  • Make a one-off payment to an individual, business or tradesperson.
  • Transfer money to other bank or savings accounts.

How do I use it?​

Online payments

  • You will need to contact your bank to set up an internet banking
  • You will need the name, sort codeand account details of the person or company you want to pay. You will also be asked to provide a reference so that the person or company receiving the payment knows what it is for.
  • You will need to log on to your bank or building society’s internet banking Although different banks will structure their websites in different ways when making a payment, you are likely to be asked to select the recipient from a list of previous payees (or recipients) or to input a new payee’s details (there may be additional security checks before you can add a new recipient). You’ll then be asked to enter the amount you want to pay, and to verify that the amount is correct. Your payment will be confirmed.

Phone payments

  • You will need to contact your bank to set up a telephone banking service.
  • You will need the name, sort codeand account details of the person or company you want to pay. You will also be asked to provide a reference so that the person or company receiving the payment knows what it is for.
  • Your bank will have a designated phone banking number, and you will need to answer some security questions before you use it.

How long does it take to process?

  • One-off online or phone payments are processed using one of two systems: Faster Payments or Bacs.
  • The Faster Payments Serviceis the default service for phone and internet bankingpayments and the vast majority will be processed through this system. Faster Payments enables a payment to be processed 24 hours a day, seven days a week and once you’ve made the payment it should be with the recipient within a couple of hours, often almost instantaneously.
  • Some banks set value limits for the amount you can send via Faster Payments and the maximum amount that can be sent through the Faster Payments system is £250,000. Individual banks and building societies can have their own lower limits – these are published on the Faster Payments website: fasterpayments.org.uk/consumers/how-much-can-i-send
  • Some accounts, such as savings and deposit accounts, won’t enable you to send Faster Payments or accept them. It can take longer for funds to be shown on the recipient’s account if they are held at some smaller banks and building societies that are not directly connected to the Faster Payments Service(a list of current members of Faster Payments is available here: fasterpayments.org.uk/membership/access-options/direct-membership/current-members). If speed of a payment is critical you should check with your bank before sending it.
  • Any payment that cannot be processed as a Faster Payment will be processed via Bacs. If it goes through this system it will take three days for the payment to reach the recipient’s account.

Security

  • It is vital that you ensure that you give the correct sort codeand account number. If you give incorrect details your money may end up in someone else’s account and it may be difficult to get it back.
  • Some banks use hand-held Chip and PIN cardreading devices to add an extra layer of security.
  • For more information on how to stay safe online contact info@fyionline.co.za

Useful information

  • Whether a person can make or receive Faster Paymentswill always depend on whether the payment is within a bank’s limits for sending faster payments and whether both accounts involved are set up to send or receive them. If speed of your payment is important you should check with your bank.
  • In addition, some accounts such as creditcards and utility bills may not be able to receive Faster Payments, and some savings accounts may not be able to send or receive them. Phone and online payments will be processed via Bacs if they can’t be processed as Faster Payments.

This Sort Code Checker shows you whether the account you’re sending money to can receive the funds through Faster Payments.

A Guide To Registering Your Business

The prospect of the administration involved when setting out to start a business can be a daunting one, but more importantly you should carefully consider the type of business you start as it will have both cost and legal implications down the line.

All companies might be businesses, but not all businesses are in the legal sense, companies. It’s an important distinction, with several implications for business owners.

Sole Proprietors

Many small and service-oriented businesses choose to operate as sole proprietors; it’s the simplest kind of business structure, and does not need to be registered. As an owner you would be the sole proprietor, and can trade under your own name, with no separation between personal and business assets and liabilities. This means that as a sole proprietor you benefit from all the profit and assets accumulated through the business, but you are also liable for any debt that the business incurs.

Private Companies

A private company is its own legal entity that is separate to the owner. Therefore by choosing to register a private company, you, as a business owner, take less risk than if you were trading in your own name as a sole proprietor. A registered company can also trade in the formal business sector and bid for government tenders.

A private company is eligible for numerous tax benefits/deductions such as business expenses, auto expenses, medical aid, office space and lower income tax rates. Smaller private companies do not pay audit fees. Together with the savings that can be made through tax and VAT, private companies often end up being the cheapest and most suitable legal format for a business.  Private companies can have one or more directors, so decisions can be made quickly. There is also no need to publish financial accounts, therefore intellectual property can be safeguarded.

For more information please contact our support term at info@fyionline.co.za

How does e-commerce work?

eCommerce stands for Electronic Commerce, which is in itself a broad term for selling on the internet through a website, electronically. With the ability to process credit cards electronically on the internet, just about anything can be sold on the web. More and more people are buying online and enjoying the benefits of convenience and often lower prices (still no tax in most states). Online stores are often able to reduce prices because they are able to eliminate overhead such as having to pay employees to run a brick and mortar store. In a busy world like ours, convenience is everything! Shipping times are so fast now that when an item is ordered online it can often be at the buyer’s doorstep the next morning. Amazon, and specifically their service Amazon Prime, has built their whole business model around easy shopping and quick shipping.

An eCommerce website does the following:

eCommerce works through a series of steps utilizing website code, the database, and 3rd party applications such as a payment process or payment gateway. eCommerce website use an SSL certificate to secure all data that is being transfered. Important data, such as credit card numbers, should never be stored within the websites database unless they have the proper PCI compliance.

An eCommerce website follows these steps:

A shopper lands on the website. The website shows categories and products that are loaded in the eCommerce website database.

A customer can add items to their cart and create an account. Again, all information is saved in the database, even if temporarily.

Once in checkout the website should now be secure showing a lock symbol and using an SSL certificate.

During checkout the website may use third-party software to get shipping rates

When you enter your credit card number the information is passed to a payment gateway such as PayPal or Authorize.net

Your order is now completed. The eCommerce website should not have your payment information in their database. All sensitive information is stored with the payment processor.

eCommerce websites are built differently, but they all use the same basic functions. The ability to accept credit cards is clearly a defining factor. Most times the credit does not actually process through your website, for security reasons, but processes through a payment gateway. A payment gateway is a company that works with the credit card companies to be sure that all credit card transactions are processed securely and credit card numbers are not stored by small businesses. You must have an account with a payment gateway (we’ll show you how to do this) to accept credit card on your website. Although your transactions will process through a gateway, the viewer will never know or be directed away from your website. Your website will be guarded with 128-bit encryption using an SSL certificate, making fraud nearly impossible. When a purchase is made the money will be transferred directly into your businesses’ bank account.

When an order is placed, the customer’s purchase and payment information will come into your administration section. You will login with your desired username and password to view this information. Through the admin section you will also be able to add new products, update products, and maintain your whole website.

FYIonline is a leading provider in eCommerce website design solutions. For more information, feel free to contact us at info@fyionline.co.za.

6 ways to grow your business

1-I think it’s safe to say that in today’s day and age if you’re running your own business, you need to be advertising – digitally. Whether you’re b2b or b2c, the business world has become so competitive that very few have the luxury of not having to market and advertise their products or services online.

2-Build an irresistible offer and work backwards.

One of the most powerful growth hacking strategies you could employ is to focus on building the irresistible offer and to work backwards. The offer is key. Of course, you do have to understand who your target demographic is. You need to know your customer. Otherwise, if you don’t know them down to the very last detail, how can you expect the offer to be irresistible to them.

3-Pay attention to the user experience.

Look at it from the customer’s point of view. Analyze the entire journey. What does the user’s experience look like? How effective is your site in drilling down and taking them through the stages of your sales funnel? How easy is the site to navigate and understand? What does the mobile experience look like?

4-Build a value-driven lead magnet.

How much value are you adding to the exchange? A very small percentage will buy right away. It often takes somewhere between 90 days and 18 months for the consumer to buy once they’ve inquired about a product or service.Be there when they’re ready to transact.

5-Nurture subscribers with an email sequence.

One great way to growth hack is to connect with your subscribers. Sounds too fundamental, doesn’t it? If you can nurture your subscribers and develop a relationship over time, you can ultimately get them to buy something from you. But, if they don’t connect with you on some level, then you can pretty much forget about it.

6-Focus on conversions and optimization.

Do you have a converting offer? Without a converting offer, you can’t possibly begin to scale or even optimize those conversions. Now, building a converting offer does involve invoking a lot of marketing principles into one. Your offer needs to be good, first and foremost.

For more information please contact our support term at info@fyionline.co.za