October 2006 - Posts - .NET at e-Merge
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October 2006 - Posts

  • Changes to your travel allowance

    Saw this on iAfrica 

    Travel allowances could catch you out
    Iona Minton

    Question:
    I am currently receiving a monthly travel allowance as part of my salary package. When it comes to completing my annual tax return, do I have to qualify for the whole amount or only 50 percent to 'break even' for the amount of tax paid/owed?

    In other words, if I qualify for the whole amount, then is the travel allowance amount considered tax free and will I be refunded the portion of tax paid on the travel allowance during the year?

    Answer:
    Nina Keyser, Senior Associate: Tax at Webber Wentzel Bowens CT says that taxpayers who receive travel allowances may be in for a surprise when they complete their 2006 tax returns. Many taxpayers who were used to getting a refund from Sars may suddenly be faced with the prospect of having to pay Sars when they receive their 2006 assessment. The reason is that taxpayers may claim less for travel expenses in 2006 than they could in 2005.

    A taxpayer who did not keep an accurate logbook of his business kilometres, must claim his travel costs based on "deemed kilometres". In 2005, the first 14 000km travelled by the taxpayer were deemed to be of a private nature. In 2006, the first 16 000km will be deemed private. The result is that the taxpayer may claim fewer business kilometres, thereby reducing the deduction that can be claimed.

    Most taxpayers use the fixed cost table to calculate their travel expenses. The table makes provision for a fixed cost, fuel and maintenance. The fixed cost portion has been reduced dramatically. But, on the other hand, the fuel and maintenance portions were increased to take the rising petrol price into account.

    A person with a car of R150 000 would in 2005 have been entitled to claim R45 389 against his travel allowance. In 2006 the same person with the same car will only be entitled to claim R36 310.

    Taxpayers with cars that cost more than R360 000 will be hardest hit: as from 2006 the maximum cost price of a car that can be taken into account is R360 000. A person with a car that costs R460 000 will be entitled to claim the same amount as a person with a car of R360 000.

    In the 2007 tax year, the deemed private kilometres will increase to 18 000km per year. The amount that taxpayers may claim will then be reduced even further.

    On the positive side, the fixed cost tables for 2007 are slightly more beneficial. The fixed costs are marginally higher and the fuel cost component has also been increased. Taxpayers who travel less than 18 000kms a year are advised to keep a log book of all business travel. This will enable them to claim their travel costs based on their actual kilometres. If they do not have a log book, they will not be entitled to claim any travel and they will definitely have to pay in on assessment.

  • Avoid being a chatterbox in interviews....

    By Andrea Coombes of Marketwatch 

    "Shut up, already?" That might be what some hiring managers are thinking when they conduct job interviews, according to a new survey of executive recruiters.

    Thirty-six percent of the recruiters said the most common mistake job applicants make is talking too much, according to a survey of 212 of its recruiters worldwide by Korn/Ferry International, a global executive-search firm based in Los Angeles.

    But being a big talker often indicates a different problem, said Scott Kingdom, managing director of industrial markets at Korn/Ferry International.

    "Talking too much is, in some ways, code for not listening very well," he said.

    "Most people, particularly if they've been a successful executive somewhere ... they want to tell you how good they are and what they've done and how they've done it, instead of listening to the issues at hand, what does the client want, and relating that to what skills they have," Kingdom said.

    "You always do yourself a service by listening more than you talk. Listen thoughtfully, and when you talk have something meaningful to say on topic, on point," Kingdom said.

    Kingdom said recruiters are in prime position to know: Some sit in on interviews, and recruiters' clients -- the employers -- often offer feedback about how job interviews with prospective hires went.

    Be prepared, but not too rehearsed

    The next most common mistake: A lack of knowledge about the company or the position, according to 22% of the recruiters, who are located in various countries.

    "It sounds ridiculously simple, but it's stunning how many very senior executives, very successful folks, show up and get into conversations that they're not prepared for," Kingdom said. "You have to assume your competition is going to be wickedly well prepared. If you're not, it will show immediately."

    But be wary of being coached until you are too smooth, others warned.

    "One of the things I'm hearing from our clients recently is people are maybe too rehearsed, too prepped," said Dale Klamfoth, senior vice president of WJM Associates, a New York-based consulting firm that works with companies on organizational effectiveness, including hiring decisions.

    "I've heard hiring managers say, 'well, they've been coached' or 'they don't ring true,'" Klamfoth said. "If they're coached, they have all these pat answers."

    Often, a coached applicant's chances are ruined by a follow-up question, because the formulaic responses don't work.

    For instance, if you're asked what's your biggest weakness and you offer a standard favorite such as "I'm a workaholic," a follow-up question of "how many hours a week do you work?" could get you into trouble.

    To combat that problem, use examples from your own experience, Klamfoth said.

    For instance, when asked "what's your weakness," you could say "I'm not as technologically savvy as I ought to be, but I just enrolled in a course and I've gotten some new equipment and I'm really getting into it," he said.

    "Obviously, it has to be true," he added.

    Isn't this all about me?

    Sixteen percent of the recruiters said an overinflated ego is the most common mistake in job interviews, while 9% said appearing overly confident was the top problem, according to the survey.

    The overinflated ego "shows itself in talking too much, and in the me, me, me conversation," Kingdom said. "I did this, I did that. You certainly want to be assertive and able to convey your skills, but nobody ever does anything by themselves in any company."

    For instance, discuss how you led a team of people who accomplished something, Kingdom suggested.

    Of course, the perception of "overinflated ego" varies in different cultures. "You would be very deferential in certain Asian discussions and in the U.S. there's still a lot of 'I can do this' and 'I can do that,'" Kingdom said.

    Consider shifting focus, Klamfoth said. "My advice to people interviewing is show up as a solution and not as an applicant. Understand who you're meeting with, understand the company, understand the competitive landscape that they're in, understand the role that you are interviewing for, and how that role contributes to the core mission [of that company], and talk about how you would approach the position as a solution to an organizational problem or issue."

    Let me think on it

    Once you've been offered a job, how long can you take to respond? Eighteen percent of the recruiters said less than one week is ideal, while 44% said one week, and another 24% said it was OK to take two weeks.

    Still, cultural norms vary, and in the U.S. one week is generally the longest you want to wait before responding, Kingdom said.

    While he agrees that one week is the norm, applicants do have options, Klamfoth noted.

    "Like everything in this process, it is negotiable," he said. "Give your reason for needing more time [and ask], 'Would it be OK if I gave you an answer on such and such a date?'"

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