Don’t rush SARS eFiling: common auto-assessment mistakes to avoid

The South African Revenue Service (SARS) auto-assessment period is drawing to a close, and taxpayers are being cautioned not to accept pre-populated returns without checking them carefully. While auto-assessments have sped up filing for millions of South Africans, failing to review the information can lead to delayed refunds, penalties, extra tax liabilities or SARS verification.

Check pre-filled information don’t assume it’s complete

The first common mistake is accepting an auto-assessment without confirming that all entries are correct. Although SARS receives data from employers, banks, medical schemes and other third parties, information may still be missing or incorrect. Taxpayers should compare the assessment against supporting documents such as their IRP5, medical aid tax certificate, retirement annuity certificate and investment statements before accepting an assessment.

Declare every source of income

Many taxpayers assume SARS already has a full picture of their finances. However, additional earnings including income from freelance work, rental properties, consulting, side businesses or certain foreign income may still need to be declared. Those who sold property, shares, unit trusts or cryptocurrency during the tax year should ensure any applicable capital gains or taxable crypto income is correctly reflected on their return.

Be accurate and eligible when claiming deductions

Taxpayers are warned not to claim deductions they do not qualify for. Home office expenses carry strict SARS rules that require a dedicated workspace used exclusively and regularly for work. Travel deductions require an accurate, up-to-date logbook, and personal expenses cannot be claimed as business costs. Conversely, some taxpayers miss legitimate benefits by failing to claim allowable items such as retirement annuity contributions, qualifying medical expenses not covered by medical schemes, and donations to approved public benefit organisations.

Avoid administrative errors

Administrative mistakes commonly delay processing. Examples include entering incorrect banking details, failing to update contact information such as cellphone numbers or email addresses, uploading incomplete or illegible supporting documents, or submitting certificates from the wrong tax year.

Respond promptly to SARS requests and don’t leave it to the last minute

Taxpayers are encouraged to pay attention to correspondence from SARS after submitting returns. Ignoring requests for verification or supporting documents can delay refunds and can lead to estimated assessments or administrative penalties if deadlines are missed. Waiting until the final days before the filing deadline is another frequent error because last-minute submissions leave little time to correct errors, respond to queries or obtain missing documentation if verification is required.

How to reduce risk

• Review every auto-assessment before accepting it.
• Ensure all sources of income have been declared.
• Verify that claimed deductions are supported by the required documentation.
• Check banking and personal details are up to date.
• Respond promptly to any SARS requests for additional information.
• Keep supporting tax records for at least five years in case SARS requests them.

With filing season now under way for taxpayers who need to submit or amend their returns, taking a few extra minutes to review the information before clicking “submit” could help avoid costly mistakes and delays later.