Latest news with #Fine&CountrySub-SaharanAfrica
IOL News
01-07-2025
- Business
- IOL News
Working from home? Discover which expenses you can claim as tax deductions
More than 50% of the duties of employees working from home duties must be performed in the home office that is clearly defined and an exclusive workspace. Image: Image: Unsplash With the 2025 tax filing season looming, many South Africans working from home are asking what home office expenses they can claim as tax-deductible items and how to do it correctly. This question is especially relevant for the growing number of South African employees working remotely for global companies who are increasingly turning to tax practitioners for guidance, says Thokozile Kumalo, Tax Consultant at Tax Consulting South Africa. 'While home office deductions may seem straightforward, the Income Tax Act includes specific provisions regulating these claims. Commission earners generally have more flexibility, but salaried employees working from home often face challenges because of the more restrictive rules applying to them,' Kumalo said. According to Fine & Country Sub-Saharan Africa (SSA), what began as a temporary shift during the pandemic has evolved into a long-term lifestyle for millions, and the ripple effect was being felt across the real estate sector, where demand is growing for homes that seamlessly support this new way of living: flexible, tech-savvy, and lifestyle-enhancing. 'The future of work is hybrid, flexible, and mobile – and the homes we live in need to reflect that,' said John Herbst, the CEO of the luxury property for sale and expert service provider, earlier this year. 'We are seeing a clear shift in what buyers and renters are looking for – from built-in workspaces and tech to locations that offer not just beauty and tranquillity, but the infrastructure and services to support productive remote work,' Herbst said. She said that if you earn only a fixed salary, work from home full time, and use a dedicated space solely for work, there may be grounds for claiming home office expenses, provided you meet the strict requirements set out in law. The tax practice said the three key sections of the Income Tax Act that govern these deductions are: Section 11(a) – General deduction formula, Section 23(b) – Use of home for trade and Section 23(m) – Limitations for salaried employees. It said Section 11(a), often referred to as the 'general deduction formula,' allows a taxpayer who is "carrying on a trade" to deduct 'expenditure and losses incurred in the production of income, provided such expenses are not of a capital nature. In the context of a salaried employee, it said 'trade' includes employment. 'Therefore, an employee who earns remuneration is regarded as carrying on a trade in the form of employment. If a salaried employee incurs home office expenses in the production of employment income, those expenses will conceptually fall within the scope of Section 11(a). "It is important when claiming home office expenditure that Section 11(a) is applied in conjunction with the limitations imposed by Section 23.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The tax consultant said Section 23(b) imposes a specific prohibition against claiming deductions for expenses related to premises used for "domestic or private" purposes. She said there is, however, an exception where there is a dedicated area used for the purposes of employment, that area is specifically equipped for such employment and the area is regularly and exclusively used for employment. For salaried employees (not commission earners), Kumalo said it is required that more than 50% of their duties must be performed in the home office and the home office must be a clearly defined and exclusive workspace. She said for full-time remote workers with a defined, exclusive home office, this meant they may qualify-in theory. Many salaried employees meet the conditions under Section 11(a) and 23(b), which often raises hopes for a successful claim, Kumalo said. She added that the biggest hurdle comes in Section 23(m), which disallows most deductions under Section 11 for employees who earn remuneration (i.e., salary) and do not earn more than 50% of that income as commission or variable-based remuneration. Tax Consulting South Africa said that for taxpayers who earn a fixed salary only, Section 23(m) prohibits deductions for most expenditure, losses or allowances that would otherwise be allowable under Section 11(a). It said only expenses directly tied to the use of the premises, such as rent, electricity, and cleaning, may be considered and only under very specific conditions. In short, Kumalo said, while Section 11(a) allows the deduction of qualifying expenses, Section 23 (b) adds strict conditions for home office use, and Section 23(m) disallows most deductions for salaried earners. 'In practice, this means that even if the general and home-office-specific conditions are met, fixed-salary earners are still barred from deducting most business-related expenses, including internet and cell phone costs, accounting fees, and stationery.' Sharing a professional tip, the consultant said if one is a fixed-salary earner working from home full-time and wish to claim deductions, they must ensure that their employer provides a formal letter confirming remote work, they have a dedicated, exclusive workspace, more than 50% of the duties are performed in that space and the claim is limited to premises-related expenses. Even then, Kumalo said SARS may still challenge deductions beyond the narrow exemptions outlined above. She said that, therefore, the onus is on the taxpayer to prove that the deduction should be allowed. The firm said that in preparation for the 2025 Tax Filing Season, taxpayers must be reminded that SARS applies the rules around home office deductions strictly and conservatively, particularly for salaried employees. Taxpayers are advised to consult a qualified tax practitioner before submitting any home office-related claims to avoid audit risk, disputes, and potential penalties, it warned. In May, Nomie Nxumalo, the executive head for people and transformation at Miway, said the integration of workspaces into personal residences brings about certain dynamics to home usage. She said many homeowners have invested in expensive office equipment, increased their reliance on home internet, and even started running businesses from their residences. However, failing to inform insurers about these changes could lead to gaps in coverage or even rejected claims in some cases. 'Most standard home insurance covers are structured around personal use of the home. Whether you're running a business or working remotely, it's crucial to declare to your insurer if a portion of your home is being used for business purposes,' Nxumalo said. 'Not doing so could result in your claims being declined or certain losses not being covered.' Independent Media Property
IOL News
26-06-2025
- Business
- IOL News
Design matters: discerning homeowners and investors shape the future of property aesthetics
Bespoke interiors by Lucy Harris Studio blend nature, modern eclecticism, and comfort for a growing family in In a new Brooklyn brownstone home. Image: Brian W. Ferry Discerning homeowners and investors were demanding more from design (both inside and out) as South Africa's property market continues to evolve. According to the team at Fine & Country Sub-Saharan Africa (SSA), who specialise in premium residential property across the region, the sector was on the cusp of a design shift, shaped by changing values, technological innovation, and a growing desire for permanence and personalisation. Real estate is no longer about location or price per square metre only. Increasingly, how a home looks, feels, and functions is as important as where it is. The open plan living, long favoured for its sense of space and sociability, is giving way to more intentional spatial zoning. This is not a complete departure from the open-plan ethos, but rather an evolution. "We're seeing a move toward multi-functional spaces that balance openness with privacy," says the Fine & Country team. "Homeowners want connection, but they also want dedicated areas for focus, fitness, or retreat." Designers were responding with innovative partitions, sliding screens, and level changes to create zones within zones, offering flexibility without forfeiting flow. Sustainability has matured from a buzzword into a baseline expectation as today's buyers are more educated and more discerning. 'It's not enough to add a few solar panels and call a property green. Sustainability must be deeply embedded, from passive climate control and greywater systems to locally sourced, low-impact building materials.' Green buildings are not only for the privileged few; they are accessible and beneficial to all. As South Africa faced rising energy costs, water shortages, and growing investor pressure for assets that meet ESG (Environmental, Social, and Governance) criteria, the property industry must adapt. Contrary to common misconceptions, green buildings are not inherently more expensive. They deliver long-term financial and environmental benefits, often at little to no extra cost. The Green Building Council South Africa (GBCSA), an independent third-party verifier, defines a green building as one that reduces its environmental impact across multiple areas, including energy and water efficiency, material use, waste, indoor air quality, transport access and socio-economic benefits. 'People often assume green buildings are about extravagant add-ons like solar panels,' said Lisa Reynolds, CEO of GBCSA, recently. 'In reality, they prioritise efficient design-reducing resource consumption while enhancing occupant well-being and long-term sustainability.' Natural ventilation, high-performance glazing, and smart home systems that actively manage energy use have become standard in high-value homes. In turn, design must accommodate these technologies while maintaining aesthetic harmony. The Absa's Homeowners Sentiment Index (HSI) for the first quarter of this year also revealed a growing aspiration among South African homeowners to live off-grid, with many seeking to replace municipal and state-provided services, particularly electricity and water, in pursuit of greater sustainability and self-sufficiency. More than three-quarters (76%) of respondents indicated a desire to move away from state-supplied electricity, while nearly half (49%) expressed interest in replacing municipal water sources. In parallel, households are actively adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity. A majority of homeowners (64%) are exploring borehole and filtration systems, while 53% are considering rainwater harvesting to improve water security. The stark minimalism of the 2010s is giving way to a softer, warmer approach. This includes textured plaster walls, soft curves, and tactile surfaces like limewash, fluted wood, and natural stone. 'The aesthetic is pared back but layered. There's a greater emphasis on craftsmanship, heritage finishes and a neutral palette that feels calm, not cold.' This trend is also practical as homeowners spend more time in their spaces, working, entertaining, and relaxing, there is a need for comfort as well as style. Interiors are expected to be intuitive and inviting. While restraint rules much of today's design thinking, personalisation is back in a big way. "We're seeing a renewed interest in bold, singular design elements, arched doorways, sculptural staircases, or one-off art commissions. It's about grounding a home with character and creating moments of surprise or narrative." In architecture, this translates to stronger façades with texture, depth, and asymmetry, rather than flat or formulaic silhouettes. As lifestyle and wellness continue to shape how people live, homes are being reimagined as holistic ecosystems. Biophilic design, the integration of nature into built environments, is gaining traction through indoor gardens, natural light corridors, and even living walls. 'People want homes that not only reflect their style, but also support their health, productivity and wellbeing. This is especially true for buyers in the upper end of the market, where design must elevate daily living.' There is a movement toward what some architects are calling 'honest architecture', a rejection of mimicry or over-decoration in favour of authenticity. Raw materials are celebrated rather than covered up. The function of a space is expressed clearly in its form. In South Africa, this dovetails with a celebration of local context: embracing vernacular architecture, indigenous plantings, and indoor-outdoor transitions that connect people to place. As buyers become more design-savvy, the expectations placed on homes are becoming more nuanced. The challenge for architects, designers and developers is to create spaces that are not only beautiful, but intelligent, sustainable and deeply personal. 'Our clients are seeking more than properties, they're seeking homes that express who they are and how they want to live. Design plays a central role in that story,' says Fine & Country SSA. Independent Media Property
IOL News
15-05-2025
- Business
- IOL News
Working from home? Understand the insurance implications before you set up
Some companies still allow their employee to work from home now. Image: Pexels PNW Production As many people embrace the convenience of home offices, only a few realise that this work-life-balance choice could have significant implications for their insurance policies. Nomie Nxumalo, executive head for people and transformation at Miway, urges South Africans to review their home and car insurance to ensure they remain adequately covered if they opt to work from the comfort of their personal space. 'Most standard home insurance policies are structured around personal use of the home. Whether you're running a business or working remotely, it's crucial to declare to your insurer if a portion of your home is being used for business purposes,' Nxumalo said. She said that not doing so could result in claims being declined or certain losses not being covered. There is a shift in the purpose of property, as homes are no longer a mere living place only. Last month, John Herbst, CEO of Fine & Country Sub-Saharan Africa (SSA), said properties today serve multiple purposes; they are now spaces to work, create, entertain, and relax. 'For real estate professionals, this means shifting the conversation from square metres to possibility. The work-from-anywhere revolution is not only changing where we live – it's redefining why we live there in the first place,' Herbst said. The network of independent estate agents said the future of work is hybrid, flexible, and mobile, and the homes people live in need to reflect that. While remote and hybrid work arrangements have recently started to decline as the return-to-office trend has gained momentum around the globe, many companies continue to embrace these models to attract and retain top talent. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ According to Miway, the working-from-home option does impact how South Africans use their homes and vehicles and must be considered when it comes to protecting these important assets. The South African-based direct insurance company said the integration of workspaces into personal residences brings about certain dynamics to home usage. It said many homeowners have invested in expensive office equipment, increased their reliance on home internet, and even started running businesses from their residences. However, the insurer said failing to inform insurers about these changes could lead to gaps in coverage or even rejected claims in some cases. For instance, Miway said home offices often house valuable equipment like computers and printers, as well as back-up supply to routers, which many people installed when loadshedding was at its worst. It added that other items could include fridges and storage, depending on the business activities. According to the company, these products may require extra coverage beyond a standard insurance policy and would certainly need to be considered under contents coverage. 'Additionally, handling sensitive data from home can expose you to cyber threats, yet most home insurance policies do not include cybersecurity,' Nxumalo said. She concluded that the best approach is to consult with an insurance professional to tailor coverage to one's specific needs, ensuring all aspects of their work-from-home lifestyle are adequately safeguarded. The Stanford Institute for Economic Policy Research (SIEPR) surveyed college graduates in 40 countries across the Americas, Europe, Asia and Africa from November 2024 to February 2025 to collect information on working from home (WFH). The institution said it derived five facts from its study. It found that WFH is highest in North America, the UK and Australia, and lowest in Asia. The study showed that WFH levels fell from 2022 to 2023 but have since stabilised. Employees with children are more likely to split their workweeks between home and the employer's location, while those without children are more likely to work in a fully remote or fully onsite capacity. WFH levels are similar for men and women in every major region of the world. The desire to WFH is highest among women with children, the study found. Independent Media Property
