IRP5 codes and the claiming of certain expenditure
THE FOLLOWING question was recently received from one of our readers:
I see myself as an independent contractor as I do contract work (project management) for different companies. In the 2023 income tax year I worked for 4 companies, of which only one indicated on their IRP5 under code 3616 that the income I earned was that of an independent contractor.
I also relocated from Cape Town to Gauteng during 2022, as one of these companies indicated that they would employ me in Gauteng—but in the end I had to pay the relocation costs myself. However, before relocating to Gauteng I had to travel to Gauteng on a few occasions for projects for one of above 4 companies. Furthermore, I am placed at clients of the companies I work for, and have to use my own cell phone, computer, printer, etc.
My questions are as follows:
1. Can I claim expenses earned in the production of income (motor expenses, cell phone, computer, etc) on the IRP5s where the income code only indicates amounts received under 3601?
2. Can I claim the relocation expenses paid by myself?
3. What expenses can I claim if I use a home office at the home I rent?
4. I assume I can claim the costs of travelling to Gauteng for work purposes?
Answer
As you have pointed out, the characteristics of an ‘independent contractor’ include having multiple clients, as well as …
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