Tax Happy Hour – 20 November 2024

Overview

In the November Tax Happy Hour we will consider the VAT and Income Tax challenges facing the hospitality industry. The VAT, Income Tax, and PAYE challenges in the hospitality industry require specialized knowledge and expertise from accountants to ensure accurate compliance, minimize tax liabilities, and safeguard the financial health of hospitality businesses.

Please join us for a practical session that will assist the practitioner to provide valuable pro-active advice to clients.

Information

Format: Recording of Online Live Streamed event
CPD: 1 CPD unit
Recording: Loaded to your CIBA Academy profile

Content/Topics

• Complex Tax Regulations: The hospitality sector operates in a highly regulated environment, where tax rules can be intricate and often subject to change. Accountants must stay updated on the latest VAT rates, exemptions, and thresholds that apply to different services within the industry, such as room rentals, food and beverage sales, and event hosting. Misinterpretation or non-compliance with VAT rules can result in significant penalties.
• VAT Calculation and Reporting: VAT is one of the most common taxes in the hospitality industry, and its application can vary depending on the type of service provided. Accountants need to ensure that VAT is accurately calculated, reported, and paid on time, especially when dealing with different rates (e.g., standard, reduced, or exempt rates) across various goods and services offered by hotels, restaurants, and other hospitality businesses.
• Income Tax Implications: Hospitality businesses often face challenges with income tax due to fluctuating revenues (seasonality, peak periods), different forms of income (e.g., accommodation, catering, event services), and varying deductions available (such as depreciation, employee costs, and operating expenses). Accountants must ensure that businesses comply with income tax regulations, optimizing tax positions while avoiding underreporting or overreporting of income.
• PAYE Compliance: The hospitality sector employs a large workforce, many of whom are paid on a regular basis or in seasonal or part-time roles. Accountants must manage PAYE systems to ensure proper income tax withholding, National Insurance contributions, and pension deductions for employees.
• Cash Flow and Record-Keeping: Hospitality businesses often deal with high volumes of cash transactions, which makes accurate record-keeping and reconciliation crucial.
• Sector-Specific Deductions and Allowances: Certain tax deductions or allowances may be unique to the hospitality industry, such as reliefs on business rates for small hotels or tax benefits related to the provision of employee accommodation.
• Advisory Role: Beyond compliance, accountants in the hospitality industry often provide advisory services, helping businesses optimize tax strategies, reduce liabilities, and navigate the challenges posed by changing tax policies, economic conditions, or shifts in customer behavior.

How to register

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After registration

1. After successful registration, the event will be listed as a course under your CIBA Academy profile. Login, My Dashboard, My Courses. Select start next to: Tax Happy Hour – 20 November 2024

Price

The event is free to attend.

Certificate

The following CPD is awarded: 1 Unit Tax.

Presenter

Johan Heydenrych CA(SA), M.Com(Tax)
Kreston South Africa
Johan completed his B. Com (Accounting) (Hons) cum laude and was awarded “Best student in Audit 700”. He has been offering specialised taxation services since 1991 across all industries. Johan was a tax partner at KPMG from 1997 to 2020 and is currently a partner in the Kreston SA network specialising in taxation. Johan is well-known for his expert presentation skills and entertains the audience with his extensive experience and stories.

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