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IOL News
13-07-2025
- Business
- IOL News
Brace yourselves, SARS is sliding into your inbox – Tax season starts now!
Get set for tax season Image: Steve Buissinne/ Pixabay This year's tax filing season officially kicks off in July, with auto assessments running from 7 – 20 July 2025. For non-provisional taxpayers who were not auto-assessed, they will be able to submit and file their income tax returns between 21 July – 20 October 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 - they know what to do and get on it fast The Procrastinator - they know what to do but leave it to the 11th hour The Panicker, who is not really sure what to do and hopes that if they ignore it, it might go away. What is tax filing season and who does it apply to? The tax filing season is the period during which taxpayers must submit their income tax returns to the SARS for the previous tax year (which runs from 1 March to the last day of February of the following year). For the current period, it would refer to 1 March 2024 to 28 February 2025. Individuals who must file an income tax return are: South African residents and non-residents who earned income in South Africa during the tax year. Individuals who: - Have capital gains, foreign income, or receive dividends not subject to automatic withholding tax. - Earn multiple income sources (e.g. salary and rental income). - Earn more than the tax threshold for the year (e.g. over R95,750 for under-65s in the 2025 tax year) - Want to claim deductions (e.g. medical expenses, retirement annuities, travel allowances). - Are provisional taxpayers – usually those who earn income not subject to pay as you earn (PAYE), such as freelancers, sole proprietors, or rental income earners). Common mistakes people make during tax filing season – and how to avoid them: Missing the deadline – Late or missed submissions can lead to penalties. Set reminders and file early – even if you're auto-assessed. Submitting incorrect or incomplete info – Outdated details, missing certificates or source code errors can delay processing. Double-check all data and use SARS eFiling's guided tools. Ignoring your auto-assessment – Don't just accept it blindly: review for missing deductions (like RA or medical aid) and file manually if needed. Not claiming eligible deductions – Medical costs, travel, home office and retirement contributions can reduce your tax – but only if you claim them with proof. Poor document management – Failing to keep receipts, logs or tax certificates puts you at risk in an audit. Store everything digitally for at least 5 years. What happens if you don't file? Failing to file a return when required can come at a high cost – even if you're owed 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's a criminal offence not to file when you're legally required to. Even if you've earned below the threshold, it's worth checking your status on eFiling or with a tax filing tips to keep you on trackTo make the process smoother and more financially beneficial, you can do the following: - Keep all supporting documents for five years, whether digitally or in the cloud. - Don't overlook key deductions like retirement annuities, home office expenses or out-of-pocket medical costs – but only claim what you're 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're struggling with the admin – especially if your situation is more complicated, and includes things like freelancing, working overseas, or capital gains. "Tax season doesn't have to be stressful. But ignoring it, or rushing through it, can lead to bigger problems down the line," Werth says. IOL
The Citizen
10-07-2025
- Business
- The Citizen
Avoid costly tax mistakes by filing correctly and on time
Avoid costly tax mistakes by filing correctly and on time When it comes to tax season, people usually fall into three categories: The Proactive – prepared, informed, and early to submit; The Procrastinator – informed, but leaves it to the last minute; The Panicker – overwhelmed, unsure what to do, and likely to ignore it altogether That's the opinion of Johan Werth, Franchise Principal and Financial Adviser at Momentum, commenting on this year's tax filing season that opened in July, with auto assessments running from July 7- 20. Non-provisional taxpayers who are not auto-assessed can file between July 21 and October 20. Werth warned: 'Assuming SARS will auto-assess your return—or that you don't need to file at all—can be a costly mistake, especially if you earn below R500,000 per annum.' If you're unsure whether you must file, check the SARS website or speak to a tax practitioner. Who must file a return? You must file a return if you: Earn more than the annual threshold (R95,750 for under-65s in 2025). Earn income from multiple sources (e.g., salary and rental). Receive capital gains, foreign income, or dividends not subject to automatic withholding tax. Want to claim deductions such as medical expenses, retirement annuities, or travel costs. Are a provisional taxpayer (e.g., freelancers, small business owners, or rental income earners). Common tax season mistakes – and how to avoid them: Missing the deadline – Late submissions attract penalties. Set reminders and file as early as possible. Incorrect or incomplete submissions – Double-check all information and documents to avoid delays. Ignoring auto-assessments – Always review your SARS auto-assessment before accepting it. Not claiming deductions – Missed deductions mean lost savings. Keep proof for valid claims. Poor record-keeping – Failing to store tax documents may expose you during an audit. Keep them digitally for at least five years. What if you don't file? Failing to file your return when legally required can result in monthly penalties of up to R16,000, legal action, and restricted access to financial services, including home loans and emigration clearance. It's a criminal offence not to file if you're liable. Tips to stay on track: Store all supporting documents safely (digitally or in the cloud) for five years. Use a registered tax practitioner or financial adviser, especially if you have complex finances. Review your SARS auto-assessment carefully for missing deductions. Don't rush through the process—early, accurate filing is always best. 'Tax season doesn't have to be stressful, but neglecting it can lead to long-term trouble. Start early, stay organised, and seek professional help if needed,' Werth advised. HAVE YOUR SAY: Like our Facebook page, follow us on Twitter and Instagram or email us at [email protected]. Add us on WhatsApp 071 277 1394. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
08-07-2025
- Business
- The Citizen
Common pitfalls to avoid this tax season
It is the time of the year that most taxpayers dread: getting their income tax assessments done and get it done right. 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.'
IOL News
08-07-2025
- Business
- IOL News
Essential tips for a stress-free tax season
Johan Werth, Franchise Principal and Financial Adviser from Consult by Momentum shares common pitfalls to avoid this tax season. Image: Supplied WHEN it comes to tax season, there are three types of people: The Proactive (they know what to do and get on it fast); The Procrastinator (they know what to do but leave it to the 11th hour); and The Panicker, who is not really sure what to do and hopes that if they ignore it, it might go away. This year's tax filing season officially kicks off in July, with auto assessments running from July 7–20. For non-provisional taxpayers who were not auto-assessed, they will be able to submit and file their income tax returns between 21 July–20 October. If you're a 'Procrastinator' or 'Panicker' type, a common — but dangerous — mistake is assuming the SA Revenue Service (Sars) will auto-assess or that no filing is needed, especially if you earn under R500 000 per annum. You can see if you are liable to submit a return by checking to see if there are communications from Sars or by using the Sars website. You can also consult a tax practitioner to confirm if you are required to file. What is tax filing season, and who does it apply to? The tax filing season is the period during which taxpayers must submit their income tax returns to the Sars for the previous tax year (which runs from March 1 to the last day of February of the following year). For the current period, it would refer to March 1, 2024, to February 28, 2025. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Individuals who must file an income tax return are: South African residents and non-residents who earned income in South Africa during the tax year. Have capital gains, foreign income, or receive dividends not subject to automatic withholding tax. Earn multiple income sources — eg salary and rental income. Earn more than the tax threshold for the year — eg over R95 750 for under-65s in the 2025 tax year. Want to claim deductions — eg medical expenses, retirement annuities, travel allowances. Are provisional taxpayers — usually those who earn income not subject to pay as you earn (PAYE), such as freelancers, sole proprietors, or rental income earners. Aside from not filing a return at all, here are some common mistakes people make during tax filing season, and how to avoid them: Missing the deadline: Late or missed submissions can lead to penalties. Set reminders and file early, even if you're auto-assessed. Late or missed submissions can lead to penalties. Set reminders and file early, even if you're auto-assessed. Submitting incorrect or incomplete info: Outdated details, missing certificates or source code errors can delay processing. Double-check all data and use Sars eFiling's guided tools. Outdated details, missing certificates or source code errors can delay processing. Double-check all data and use Sars eFiling's guided tools. Ignoring your auto-assessment: Don't just accept it blindly: review for missing deductions (like retirement annuity or medical aid) and file manually if needed. Don't just accept it blindly: review for missing deductions (like retirement annuity or medical aid) and file manually if needed. Not claiming eligible deductions: Medical costs, travel, home office, and retirement contributions can reduce your tax — but only if you claim them with proof. Medical costs, travel, home office, and retirement contributions can reduce your tax — but only if you claim them with proof. Poor document management: Failing to keep receipts, logs or tax certificates puts you at risk in an audit. Store everything digitally for at least five years. What happens if you don't file? Failing to file a return when required can come at a high cost, even if you're owed 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 have earned below the threshold, it's worth checking your status on eFiling or with a tax practitioner. To make the process smoother and more financially beneficial, you can do the following: Keep all supporting documents for five years, whether digitally or in the cloud. Don't overlook key deductions like retirement annuities, home office expenses or out-of-pocket medical costs — but only claim what you're 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 are struggling 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. But ignoring it or rushing through it can lead to bigger problems down the line. * Johan Werth is the franchise principal and financial adviser from Consult by Momentum. ** The views expressed here do not reflect those of the Sunday Independent, ION, or Independent Media. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
