If you’re a sole proprietor, freelancer, or operate an informal business, you might have thought the Budget Speech wasn’t “for people like you.” But think again. The 2025 Budget Speech included subtle shifts that directly affect micro-entrepreneurs — and they could either hurt or help your journey, depending on how you respond.
What’s New for Microbusinesses?
- Turnover Tax Threshold Adjustments: The qualifying threshold for turnover tax has been modestly raised, allowing more informal businesses to stay in the simplified tax bracket.
- Digital Compliance Support: SARS has rolled out mobile compliance tools to help informal businesses register and file easily, even from a smartphone.
- Increased Enforcement: With better technology, expect increased visibility and enforcement — especially for cash-heavy businesses.
Key Takeaways for Micro and Informal Entrepreneurs
- Stay Within the Turnover Tax System if You Qualify It offers a simplified structure with lower tax rates and fewer reporting requirements. Make sure you stay under the threshold and file properly and within the deadlines.
- Register and Get Compliant Early Compliance is no longer optional. But with new tech tools, it’s becoming easier and faster to stay on the right side of SARS. Get ahead before penalties bite.
- Don’t Fear Formalisation Moving from informal to formal doesn’t mean giving up your independence. It means opening doors to funding, markets, growth and profitability.
- Ask for Guidance At Primorial, we work with grassroots businesses every day. Whether you run a passion project, hairdresser, or delivery hustler, we can help you grow sustainably.
The Power of Knowledge
The Budget may seem far removed from your day-to-day hustle. But the small shifts it introduces can have a big impact. Make sure you’re making informed decisions. You and your business are worth it.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
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