As tax season begins on July 7, 2025, the South African Revenue Service (SARS) will issue auto-assessments to selected taxpayers once again. While it may seem convenient to accept an auto-assessment, there are important considerations to keep in mind before you click “accept.”
Donations to public benefit organisations (PBOs)
If you donated to a registered PBO and received a Section 18A certificate, these amounts will not be reflected in your auto-assessment. Failing to include them manually means missing out on a deduction that could reduce your taxable income.
Home office deductions
Do you work from home and meet the requirements to claim home office expenses? These won’t be pre-populated in your auto-assessment. You’ll need to submit these separately with the required supporting documents, or risk losing a valuable deduction that can reduce taxable income.
Travel allowances or use of a company vehicle
If you receive a travel allowance or the right to use a motor vehicle, SARS won’t automatically calculate potential deductions related to business travel. This could lead to unnecessarily higher taxes if not manually inputted.
Use of personal assets for work
Do you use your laptop, cell phone, or tablet for work? You may qualify for a wear and tear allowance under Section 11(e) of the Income Tax Act. This allowance, which can reduce your taxable income, is not considered in the auto-assessment and must be claimed separately.
Additional income: Rentals, freelance work, or side hustles
The auto-assessment only reflects income known to SARS. This must be disclosed if you earned income from rentals, freelancing, or any other trade. Failing to do so could result in penalties and interest for non-disclosure.
Out-of-pocket medical expenses
Qualifying medical expenses not reimbursed by your medical aid may be eligible for a Section 6B medical credit rebate, potentially reducing your tax liability. These qualifying expenses are not automatically included in your auto-assessment and must be manually submitted.
What if you’re getting a refund anyway?
Even if Sars’s auto-assessment shows a refund, you’re still legally obligated to disclose all your income correctly. Accepting an inaccurate assessment, knowingly or unknowingly, can lead to penalties of up to 200%, plus interest!
If your auto-assessment doesn’t reflect your complete financial picture or you must submit supporting documents, you must file an accurate return by 20 October 2025. Accepting the auto-assessment without proper review could cost you in the long run.
Disclaimer: This article is for informational purposes only and does not constitute tax advice. For personalised guidance, please consult a registered tax practitioner.
Article by: Mahmood I Surty, a senior lecturer at the University of the Witwatersrand, a registered tax practitioner.
