Author: David Beattie
Running a school comes with more than just the responsibility of providing quality education – there are complex tax, labour, and compliance matters that can have a significant financial impact if not managed correctly. Recent insights highlight several areas where schools, educators, and administrators need to tread carefully:
- Employer-provided phones and laptops
The use of company-owned devices or cell phone allowances can create taxable fringe benefits if not handled properly. Schools should have clear policies and employment contract clauses in place to avoid unnecessary tax exposure. - Tuition fee discounts for teachers
While offering reduced school fees to staff is common practice, SARS views this as a fringe benefit. Schools need to correctly calculate the marginal cost and ensure that contracts, invoices, and policies reflect this accurately to avoid penalties. - Sports coaches and non-standard employment
Many schools rely on seasonal staff such as coaches, music teachers, and invigilators. Understanding the difference between standard and non-standard employment is critical, as it determines how PAYE should be applied. Incorrect treatment could expose schools to compliance risks. - Accommodation on school premises
When schools provide housing for teachers and staff, this often creates a taxable fringe benefit. Applying the correct valuation – and where appropriate, applying for a SARS directive to reduce the value – is essential to remain compliant. - Bursaries for employees’ relatives
Bursaries can be an excellent benefit for staff, but only if structured correctly. Recent changes to the law make it clear that salary sacrifice arrangements disqualify these bursaries from tax exemptions, which could leave employees worse off if not carefully managed.
Why this matters
Each of these areas highlights the importance of proactive tax planning, accurate policy wording, and proper record-keeping. Mistakes don’t just cost money in penalties and interest – they can also create reputational risks with staff and stakeholders.
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