Common pitfalls to avoid this tax season
Tax season started on Monday, and the eFiling system at Sars is already slowing down due to high volumes as people try to get their assessments done.
The tax filing season is the period when taxpayers must submit their income tax returns to Sars for the previous tax year, which runs from 1 March to the last day of February of the following year. For this year, it would be from 1 March 2024 to 28 February 2025.
Johan Werth, franchise principal and financial adviser from Consult by Momentum, says when it comes to tax season, there are three types of people:
The Proactive, who knows what to do and get it done fast
The Procrastinator, who knows what to do but leaves it to the eleventh hour and
The Panicker, who is not really sure what to do and hopes that if they ignore it, it might go away.
Auto assessments run from 7 to 20 July 2025, and non-provisional taxpayers who were not auto assessed will be able to submit and file their income tax returns between 21 July and 20 October 2025.
ALSO READ: Didn't receive Sars auto-assessment notice? You can now file for tax return
Do not think you have no assessment to be done during tax season
Werth says you are a 'Procrastinator' or 'Panicker', a common but dangerous mistake is assuming Sars will auto-assess you or that no filing is needed, especially if you earn under R500 000 per year.
'You can see if you are liable to submit a return by checking to see if you received any communication from Sars or by using the Sars website. You can also consult a tax practitioner to confirm if you are required to file.'
People who must file an income tax return are South African residents and non-residents who earned income in South Africa during the tax year, as well as people who:
have capital gains, foreign income, or receive dividends not subject to automatic withholding tax
have multiple income sources, such as a salary and rental income
earn more than the tax threshold for the year, such as over R95 750 for under-65s in the 2025 tax year
want to claim deductions, such as medical expenses, retirement annuities and travel allowances
are provisional taxpayers – usually people who earn income not subject to pay as you earn (PAYE), such as freelancers, sole proprietors, or rental income earners.
ALSO READ: Are you making money with crypto assets? Sars is looking for you
Other common mistakes tax payers make during tax season
Werth says aside from not filing a return at all, people make these common mistakes during tax filing season:
Missing the deadline' late or missed submissions can lead to penalties, and you should set reminders and file early, even if you are auto-assessed.
Submitting incorrect or incomplete info: outdated details, missing certificates or source code errors can delay processing, and you should double-check all data and use Sars' eFiling guided tools.
Ignoring your auto-assessment: do not just accept it blindly; review for missing deductions, such as retirement annuities or medical aid, and file manually if you need to.
Not claiming eligible deductions: medical costs, travel, a home office and retirement contributions can reduce your tax, but only if you claim them with proof.
Poor document management: if you fail to keep receipts, logs or tax certificates, it puts you at risk in an audit. Store everything digitally for at least 5 years.
ALSO READ: Beware of these scams during tax season
What happens if you do not file during tax season?
And if you do not file? Werth says failing to file a return when required can come at a high cost, even if Sars owes you a refund. 'Sars may impose monthly administrative penalties of up to R16 000, initiate legal action and block access to essential services like home loans or emigration clearance.'
'It is a criminal offence not to file when you are legally required to. Even if you earned below the threshold, it is worth checking your status on eFiling or with a tax practitioner.'
Werth shares these tax filing tips to keep you on track and make the process smoother and more financially beneficial:
Keep all supporting documents for five years, whether digitally or in the cloud.
Do not overlook key deductions like retirement annuities, home office expenses or out-of-pocket medical costs but, only claim what you are eligible for.
Check your Sars auto-assessment, especially if you have income from multiple sources.
Use a professional such as a financial adviser or tax practitioner if you struggle with the admin, especially if your situation is more complicated and includes things like freelancing, working overseas, or capital gains.
Tax season does not have to be stressful, Werth says. 'But ignoring it, or rushing through it, can lead to bigger problems down the line.'
There were many complaints the past two days from taxpayers trying to check their auto-assessments. Sars says on its website its system is currently experiencing unusually high traffic volumes.
'We value your experience and appreciate your patience as our dedicated teams work diligently to resolve the issue and restore full service as quickly as possible. We apologise for any inconvenience this may have caused.'
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