Common pitfalls to avoid this tax season

Tax season began on Monday, and the eFiling system at Sars is already slowing down as a consequence of excessive volumes as folks attempt to get their assessments carried out.

The tax submitting season is the interval when taxpayers should submit their earnings tax returns to Sars for the earlier tax 12 months, which runs from 1 March to the final day of February of the next 12 months. For this 12 months, it could be from 1 March 2024 to twenty-eight February 2025.

Johan Werth, franchise principal and monetary adviser from Consult by Momentum, says in relation to tax season, there are three varieties of folks:

• The Proactive, who is aware of what to do and get it carried out quick
• The Procrastinator, who is aware of what to do however leaves it to the eleventh hour and
• The Panicker, who will not be actually certain what to do and hopes that in the event that they ignore it, it would go away.

Auto assessments run from 7 to twenty July 2025, and non-provisional taxpayers who weren’t auto assessed will be capable to submit and file their earnings tax returns between 21 July and 20 October 2025.

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Do not assume you haven’t any evaluation to be carried out throughout tax season

Werth says you’re a “Procrastinator” or “Panicker”, a standard however harmful mistake is assuming Sars will auto-assess you or that no submitting is required, particularly for those who earn beneath R500 000 per 12 months.

“You can see in case you are liable to submit a return by checking to see for those who obtained any communication from Sars or through the use of the Sars web site. You may seek the advice of a tax practitioner to substantiate in case you are required to file.”

People who should file an earnings tax return are South African residents and non-residents who earned earnings in South Africa throughout the tax 12 months, in addition to individuals who:

• have capital good points, international earnings, or obtain dividends not topic to computerized withholding tax
• have a number of earnings sources, comparable to a wage and rental earnings
• earn greater than the tax threshold for the 12 months, comparable to over R95 750 for under-65s within the 2025 tax 12 months
• need to declare deductions, comparable to medical bills, retirement annuities and journey allowances
• are provisional taxpayers – often individuals who earn earnings not topic to pay as you earn (PAYE), comparable to freelancers, sole proprietors, or rental earnings earners.

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Other widespread errors tax payers make throughout tax season

Werth says apart from not submitting a return in any respect, folks make these widespread errors throughout tax submitting season:

• Missing the deadline” late or missed submissions can result in penalties, and it’s best to set reminders and file early, even in case you are auto-assessed.
• Submitting incorrect or incomplete data: outdated particulars, lacking certificates or supply code errors can delay processing, and it’s best to double-check all information and use Sars’ eFiling guided instruments.
• Ignoring your auto-assessment: don’t simply settle for it blindly; evaluation for lacking deductions, comparable to retirement annuities or medical assist, and file manually if it is advisable.
• Not claiming eligible deductions: medical prices, journey, a house workplace and retirement contributions can scale back your tax, however provided that you declare them with proof.
• Poor doc administration: for those who fail to maintain receipts, logs or tax certificates, it places you in danger in an audit. Store every thing digitally for at the very least 5 years.

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What occurs if you don’t file throughout tax season?

And if you don’t file? Werth says failing to file a return when required can come at a excessive price, even when Sars owes you a refund. “Sars could impose month-to-month administrative penalties of as much as R16 000, provoke authorized motion and block entry to important providers like dwelling loans or emigration clearance.”

“It is a felony offence to not file when you’re legally required to. Even for those who earned under the edge, it’s price checking your standing on eFiling or with a tax practitioner.”

Werth shares these tax submitting tricks to hold you on monitor and make the method smoother and extra financially useful:

• Keep all supporting paperwork for 5 years, whether or not digitally or within the cloud.
• Do not overlook key deductions like retirement annuities, dwelling workplace bills or out-of-pocket medical prices however, solely declare what you might be eligible for.
• Check your Sars auto-assessment, particularly you probably have earnings from a number of sources.
• Use knowledgeable comparable to a monetary adviser or tax practitioner for those who wrestle with the admin, particularly in case your scenario is extra difficult and consists of issues like freelancing, working abroad, or capital good points.

Tax season doesn’t must be demanding, Werth says. “But ignoring it, or speeding by it, can result in greater issues down the road.”

There have been many complaints the previous two days from taxpayers making an attempt to verify their auto-assessments. Sars says on its web site its system is presently experiencing unusually excessive visitors volumes.

“We worth your expertise and respect your endurance as our devoted groups work diligently to resolve the difficulty and restore full service as rapidly as potential. We apologise for any inconvenience this may occasionally have triggered.”