Sanlam Reality

Tax season shouldn’t be so, well, taxing

It’s almost time to file your tax return, which means it’s a good idea to start getting your paperwork in order.

While tax preparation may be an enjoyable task for a select few, the majority of us groan at the thought. It needn’t be too arduous, though, if we start preparing now to ensure a smooth and stress-free filing experience come July, when income tax season opens. We’ve got you covered with simple steps to streamline the process.

Get organised, early

Take note of the tax season dates relevant to you, then begin by gathering all the necessary documents.
For non-provisional taxpayers (individuals who make their contributions to SARS via PAYE deducted from their salary each month), filing for the 2024 tax year (1 March 2023 to 29 February 2024) opens on 15 July 2024 and closes 21 October 2024. For provisional taxpayers (people who earn income other than a salary, on which no income tax has been deducted), filing opens on 15 July 2024 and closes on 20 January 2025.

Create a dedicated folder to keep everything in one place, so it’s easier to find what you need, when you need it. Documents you’ll require typically include:

IRP5/IT3(a)
Medical aid tax certificate
Retirement annuity tax certificate

Make sure your tax info is up to date

Contact SARS or log on to SARS e-Filing to check your tax status and make sure that your previous tax returns and details are current. If your contact information, residential address and/or banking details are not correct, you may encounter problems accessing your e-Filing profile or receiving any refund payments owed to you. Likewise, if previous tax returns are outstanding, you may be issued with a penalty. You will need to address any outstanding tax returns to ensure a smooth filing process this year.

Understand your SARS auto-assessment

This is a pre-populated (filled in) tax assessment issued by SARS to certain taxpayers. SARS uses tax information supplied by employers, financial institutions, medical schemes and other third-party data providers to generate an assessment automatically, without any input from you, the taxpayer. You’ll know if you’ve been auto-assessed by SARS because they will notify you by email and/or by SMS. This year, SARS has indicated that notifications will be sent between 1 and 14 July. What should you do if you’ve been auto-assessed? It’s very important not to approve your assessment without carefully checking it (or having your tax practitioner check it) first, as SARS may not have received all of your most up-to-date documentation, and you may miss out on claiming certain deductions. An auto-assessment simply allows tax payers to understand what tax information SARS already has.

Seek help if you need it

If you find yourself overwhelmed or unsure about any aspect of the tax process, don’t hesitate to seek professional assistance from a registered tax practitioner, who can ensure you’re compliant with all regulations and potentially identify deductions or credits you may have overlooked. Alternatively, you could use an online service like Tax Tim (taxtim.com), which can take you through the process step by step, helping you to avoid penalties, maximise your refund and file your return in as little as 20 minutes.

Be aware of scams

‘Phishing’ refers to the attempt to trick individuals into revealing sensitive information such as login details, passwords, credit card numbers, bank account information or other personal data. This is typically done through deceptive emails, text messages or fake websites that appear legitimate. SARS has a page dedicated to making the public aware of scams. Examples include emails that appear to be from returns@sars.co.za or refunds@sars.co.za , indicating that taxpayers are eligible to receive tax refunds. Beware of emails that ask for personal, tax, banking and e-Filing details. Learn more here to avoid being scammed.

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