SARS tax support for legal professionals and law firms
A legal practice carries several distinct tax positions at once - the practitioner's personal income tax, the firm's company income tax and VAT, and the sole-practice question where they overlap. This page separates those positions so you can see whose tax number an issue sits on, which records apply, and how the firm's existing accountant stays involved. It does not include trust-account audit or legal-practice compliance.
A firm's tax matter is not one matter
Personal income tax, company income tax, VAT and PAYE can each sit on a different tax number - even within one practice. The remedy, the records and the collection route all follow the tax number the issue sits on. The assessment establishes that first, then scopes each position on its own facts.
The positions a practice can carry
Each position has a distinct evidence set and collection route. Identifying which one your issue sits on is the first step before any remedy is scoped.
The practitioner's personal income tax
A salaried professional, partner or director files on a personal income tax number. An estimated assessment, a refund hold or a personal tax debt follows the individual record - not the firm.
The firm as a company
Where the firm is a registered company, it carries company income tax (ITR14), VAT where registered, and PAYE for staff. Entity-level arrears, compliance status and returns sit on the firm's tax number, with possible director exposure.
The sole practice
A sole practitioner may trade in their own name rather than through a company. The personal and practice positions then overlap on one tax number, and the records and obligations run together.
Arrears across the positions
VAT, PAYE or income tax arrears can sit on any of the positions above. The assessment establishes which tax number each debt sits on before any relief or payment route is scoped.
From positions to a written scope
The sequence establishes which tax number each issue sits on, then scopes each position before any representative action is taken.
Identify the positions
Personal, firm, sole practice - and which tax number each notice or debt sits on.
Confirm the facts
Read the assessments, returns and compliance profile for each position before proposing any remedy.
Scope the options
Filing, debt relief, objection or compliance remediation - mapped to each position.
Quote in writing
A written scope and fee quotation. Work begins only after you approve it.
Which records are relevant
Gather what you can, on whichever tax number is involved. These are collected securely only after a written scope is agreed - you do not need all of them to begin, and you should never send passwords, OTPs or tax numbers with an initial enquiry.
What is in scope
- A separation of personal, firm and sole-practice tax positions before any remedy is scoped.
- Coordination with the firm's existing accountant or bookkeeper rather than duplicating their records.
- Pointers to debt relief, objection and compliance-status routes mapped to each position.
What is not included
- Trust-account audit. That is a separate regulatory and accounting function outside this scope.
- Legal-practice compliance and statutory fee reporting. Those obligations remain with the firm's own compliance advisers.
- A determination of director or personal liability. That depends on the documented facts and the law.
Can my accountant remain involved?
Yes. Where the firm already has an accountant or bookkeeper, the work is coordinated alongside them rather than duplicating what they already hold. The assessment establishes what records exist, who maintains them, and whether a SARS Power of Attorney is already in place - so the scope fits around the existing relationship and routine compliance continues uninterrupted.
Reconciling fee, debtor and trust movements
A tax review may need fee invoices, debtor ageing, disbursement records and the accounting entries that explain transfers between trust and business accounts. Where the practice is a partnership, identify the agreement and relevant profit-allocation records too. Review these with the practice accountant so different cash movements are not treated as one unexplained receipt. VAT records can be checked via VAT returns or verification assistance where a SARS query is involved.
Questions about law firm tax support
Is trust-account audit included?
No. The scope remains the agreed SARS tax matter. Trust-account auditing, regulatory compliance and the resolution of trust shortfalls remain separate. Identify those concerns at scoping rather than assuming they are included. The work here addresses SARS income tax, VAT, PAYE, debt and dispute matters on the practitioner and firm tax numbers - not the firm's legal-practice compliance or statutory trust reporting.
Can firm and personal matters be separated?
Yes, and usually they should be. A personal income tax debt on the practitioner's own assessment is a different matter from company income tax, VAT or PAYE arrears on the firm. The assessment establishes which tax number each issue sits on and scopes each position on its own facts - even where they belong to the same person.
Can my accountant remain involved?
Yes. Where the firm already has an accountant or bookkeeper, the work is coordinated alongside them. The assessment confirms what records exist, who maintains them, and whether a SARS Power of Attorney is already in place - so submissions are not duplicated or conflicting, and routine compliance continues with your existing adviser.
Separate the positions before scoping a remedy
A confidential assessment establishes which tax number each issue sits on, scopes each position, and coordinates with your existing accountant. No documents or passwords are required to begin.