Tax season is here: don't let SARS catch you off guard

PICTURE this: It's October 19th, you're scrambling through boxes of receipts, and your tax return deadline is tomorrow. Sounds familiar? Well, breathe easy. The 2025 tax season has arrived, and we're here to guide you through it step by step, so you can avoid the last-minute panic and maybe even score a nice refund.

What you need to know about tax season 2025

Tax season officially starts on July 7 and will run until October 20, for most individual taxpayers. But here's the good news – SARS has made things easier with their expanded auto-assessment system, which means many of you might not need to lift a finger. 

Key dates to circle on your calendar

Auto-Assessments: July 7to 20.

- If you're lucky enough to be selected, SARS will do the heavy lifting for you.

- You will get an SMS or email notification if you qualify.

Individual taxpayers (non-provisional): July 21 to October 20.

- This applies to most working South Africans with straightforward tax affairs. 

Provisional taxpayers and trusts: July 21 to January 19, 2026.

- Business owners and those with complex tax situations get extra time. 

The magic of auto-assessments: your tax return on autopilot

Here's where things get exciting. SARS has expanded their auto-assessment program, which is like having a personal tax assistant. If your tax situation is straightforward – think single employer, standard deductions, no complicated investments – you might be selected for an auto-assessment.

How it works

- SARS uses information from your employer, medical aid, and other sources.

- They calculate your tax return automatically.

- If you agree with it, you do absolutely nothing.

- If there's a refund due, it hits your bank account within 72 hours.

What to do if you're auto-assessed

- Check your SMS and email for notifications.

- Log into eFiling or the SARS MobiApp to review your assessment.

- If everything looks correct, sit back and wait for your refund.

- If something's wrong, you can still file manually before October 20. 

Do you even need to file?

Not everyone needs to submit a tax return. You're off the hook if:

- You earn less than R500 000 per year from a single employer.

- Your only income sources are salary, basic interest, and dividends.

- You haven't received any special allowances or benefits.

- You're selected for auto-assessment and accept it.

The golden rule: When in doubt, file anyway. It's better to be safe than face SARS penalties later.

Essential do's and don'ts

Do's:

- Start early: Gather your documents now – IRP5s, medical aid certificates, investment statements

- Update your details: Make sure SARS has your correct banking and contact information.

- Keep records: Hold onto all tax-related documents for at least five years.

- Use official channels: Always use eFiling, SARS MobiApp, or visit a SARS branch.

- Pay attention to deadlines: Mark October 20 in red on your calendar.

Don'ts:  

- Don't ignore SARS communications: Respond promptly to any requests or queries.

- Don't fall for scams: SARS will never ask for banking details via email or SMS.

- Don't leave it to the last minute: Procrastination leads to mistakes and penalties.

- Don't guess: If you're unsure about something, ask for help or consult a tax professional.

- Don't forget medical expenses: These can significantly reduce your tax bill.

Money talk: what's in your pocket?

Tax Thresholds for 2025:

- Under 65: You start paying tax if you earn more than R95 750 per year.

- 65 and older: The threshold jumps to R148 17.

Refund reality check:

- Refunds of R100 or more are paid within 72 hours.

- Smaller refunds accumulate until they reach R100.

- Check your refund status on WhatsApp (0800 11 7277) or the SARS MobiApp.

Avoiding the scam trap

Tax season brings out the scammers like bees to honey. Here's how to protect yourself:

- SARS will never ask for your banking details via email or SMS.

- Always log into eFiling directly – don't click links in emails.

- If an offer sounds too good to be true, it probably is.

- Report suspicious communications to [email protected].

Getting help when you need it

Free resources:

- SARS YouTube channel has step-by-step tutorialse.

- Filing help section covers most common questions.

- SARS Online Query System (SOQS) for forgotten tax numbers and general queries.

In-person help:

- Book appointments at SARS branches online.

- Visit Mobile Tax Units in your area.

Check the SARS website for pop-up locations.

Your action plan for success

Week 1: Gather all your tax documents and update your SARS profile.

Week 2: Check if you've received an auto-assessment notification.

Week 3: If no auto-assessment, start preparing your manual return.

Week 4: Submit your return and double-check everything.

Ongoing: Keep an eye on your refund status and respond to any SARS queries.

The bottom line

Tax season doesn't have to be the annual nightmare you've come to expect. With SARS making things easier through auto-assessments and improved online services, this could be your smoothest tax season yet. The key is to start early, stay organised, and don't be afraid to ask for help when you need it.

Remember, whether you're expecting a refund or need to pay additional tax, dealing with it promptly and correctly will save you headaches down the road. SARS has streamlined many processes, but they still expect accuracy and punctuality from taxpayers.

So, grab that cup of coffee, log into eFiling, and tackle your 2025 tax return with confidence. Your future self will thank you when that refund hits your account or when you avoid those dreaded penalty letters. Tax season 2025 is here – let's make it count. 

Sanjith Hannuman is the managing director of Avinash Consultants & Actuaries.

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