Tax season does not have to be a stressful time if you approach it the right way and ensure you do not make common mistakes.
It is tax season, which means it is time for taxpayers to stress about getting their tax return right to ensure they do not pay too much tax or too little and maybe, just maybe, get a few rands back from Sars.
This year, Sars’ tax systems and officials are expected to be more efficient and focused on collecting revenue, which means you must be sure you included everything in your return, tax manager at Allan Gray, Meagan Fraser, says.
“For the majority of South Africans, the reversal of the proposed 0.5% VAT increase earlier this year provided a sense of relief in terms of their monthly budgets. However, the loss of the anticipated revenue from this proposed increase resulted in a R75 billion shortfall in the national budget.”
This, she points out, resulted in a renewed drive on the part of Sars to ensure that outstanding taxes are accurately and efficiently collected. “Its efforts during tax-filing season will therefore be focused on taxpayer compliance and collecting outstanding taxes.”
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However, she says, this does not necessarily mean you will pay more tax.
“Sars cannot collect more tax from you than you owe. As a taxpayer, you have the right to consistent and impartial application of the law, but you also have the obligation to submit your return with complete and accurate information to Sars on time.”
How to make sure your auto-assessment is correct
However, not everyone has to submit a tax return. If you earn below R500 000 a year and have no deductions and only one employer, you are exempt from filing a tax return. According to Sars, 5.8 million taxpayers are auto-assessed this year, which means they do not have to prepare their own returns.
However, she warns that you must still carefully check the assessment. “Sars uses the data they received from employers, financial institutions and medical aid schemes to pre-populate amounts on behalf of taxpayers.
“The intention is to improve the accuracy and verifiability of the amounts completed on returns and to assist Sars in issuing estimated assessments for taxpayers who have relatively simple tax affairs.”
Fraser says if you were auto-assessed, Sars will notify you via SMS or email. “It is up to you to ensure that the information Sars used in your return is accurate and complete by cross-checking it against the tax certificates your service providers issued.
“If you disagree with any amounts Sars used, you must query the amounts directly with the relevant third-party data providers and request that they resubmit the corrected information to Sars.” This would be amounts such as your salary and medical aid payments.
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If you have any additional income or deductions not included in your return, you will have to add the relevant information manually.
If you accept your auto-assessment, Sars will pay you any money it owes you within 72 hours.
Getting your tax documents ready
If you are not auto-assessed, you have to complete your tax return. The first step is to get your tax documents ready. Fraser says this include an IRP5 from your employer, an IT3(b), IT3(c), IT3(s) and a retirement annuity fund contribution certificate from your investment manager, your medical scheme tax certificate and proof of qualifying medical expenses, as well as documents related to any rental properties.
“Remember, you are required to keep copies of all supporting documents for five years from the date of submitting your return, as Sars may request these documents to verify the information you declared.”
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With tax season in full swing, Fraser urges taxpayers not to wait until the last moment to submit their return to avoid incurring penalties. “It is important to ensure you comply by filing your income tax return accurately and by the set deadline, as well as settling any outstanding taxes in full and on time.”
Most frequent error taxpayers make
Adriana Taljaard, an accountant from AT Accounting & Taxation Solutions, who works with Procompare, an online platform that connects South Africans with local professionals, says the most frequent error taxpayers make is forgetting to add their medical-aid deductions.
Procompare’s analysis of thousands of requests for accountants reveals a key taxpayer challenge: Sars auto-assessments shows these key insights:
- 1 in 6 taxpayers need professional help: 17% of individual tax requests on its platform were for auto-assessments.
- Top errors: Missing medical aid deductions, duplicate IRP5s and undeclared side-hustle income.
- Cost of correction: The average fee accountants charge to fix these errors is R800.
- Quick turnaround: Most issues are resolved in 2–5 working days once documents are provided.
