Submitting your tax return can feel overwhelming — but most tax problems don’t come from SARS being difficult. They come from small mistakes made by taxpayers. These mistakes lead to audits, penalties, delays, and sometimes very expensive surprises.
Whether you’re a small business owner, freelancer, content creator, or employee, here are the most important things to avoid when filing your tax return.
1. Avoid Filing Late
SARS charges penalties for late filing — and they accumulate monthly.
Consequences of filing late:
- Administrative penalties (R250 – R16,000 per month)
- Interest on amounts owed
- A flag on your tax compliance status
- Possible legal action for repeated non-compliance
📌 Tip: File early to avoid stress. Early filers get fewer SARS reviews.
2. Avoid Guessing Your Income or Expenses
SARS already receives third-party information from:
- Your employer (IRP5)
- Your bank
- Medical Aid
- Retirement funds
- Investment platforms
- Some gig economy platforms
If you guess your amounts or change them without evidence, SARS will detect the mismatch.
This triggers:
- Verification
- Audit
- Delayed refunds
- Reassessment with penalties
📌 Tip: Always use real figures based on documents and bank statements.
3. Avoid Claiming Expenses Without Proof
You must be able to prove every deduction you claim.
You need:
- Receipts
- Invoices
- Proof of payment
- Bank records
- Contracts
If SARS asks for documents and you can’t provide them, they will reverse your expenses and charge penalties.
📌 Tip: Store receipts digitally or in a folder throughout the year.
4. Avoid Ignoring “Side Hustle” Income
Many South Africans forget that ALL income must be declared:
- Freelancing
- Side businesses
- Online sales
- Transport/taxi income
- Renting rooms or property
- TikTok/YouTube earnings
- Forex and crypto trading
- Commissions
- Invoices paid directly to your bank account
If money came into your account for work, SARS views it as taxable.
📌 Tip: Keep a simple income log for all non-salary income.
5. Avoid Mixing Personal & Business Finances
If you run a business and use your personal bank account, it becomes hard to:
- Prove expenses
- Track income
- Provide documentation
- Calculate tax accurately
This often results in SARS rejecting claims or imputing higher tax.
📌 Tip: Open a separate business account, even if you’re a sole proprietor.
6. Avoid Submitting Without Checking Your Auto-Assessment
SARS sometimes auto-assesses taxpayers, but:
- The auto-assessment might miss business income
- It may not include all deductions
- It can under-report income → penalties later
- It may create a false refund → SARS reverses it later
📌 Tip: Always compare your own records to SARS’s figures.
7. Avoid Forgetting to Declare Vehicle, Home Office & Travel Correctly
Incorrect claims for:
- Home office
- Wear-and-tear
- Travel allowance
- Business mileage
… can trigger an audit instantly.
📌 Tip: Only claim these if you genuinely qualify and have supporting records.
8. Avoid Filing Without Supporting Documents Ready
SARS may request documents immediately after submission.
If you cannot provide them within the deadline:
- SARS disallows the deduction
- You may owe money
- Your refund will be blocked
- This can affect your tax clearance
📌 Tip: Gather all documents before filing.
9. Avoid Ignoring SARS Emails and SMS Notifications
When SARS sends:
- “Verification required”
- “Supporting documents needed”
- “Return rejected”
…you must respond quickly.
Failure to respond = SARS finalizing your return in their favour, not yours.
📌 Tip: Check your eFiling and email regularly during tax season.
10. Avoid Trying to Fix Past Non-Compliance Alone
If you:
- Haven’t filed for years
- Under-declared income
- Owe penalties
- Made mistakes on old returns
…don’t wait for SARS to come to you.
📌 Tip: A tax practitioner can help reduce penalties or negotiate remittance.
Final Thoughts
Submitting tax returns doesn’t have to be complicated — the key is accuracy, honesty, and proper record-keeping. Avoiding these common mistakes protects you from penalties and helps you maintain a clean SARS profile.
If you feel overwhelmed by tax filing, compliance, or bookkeeping, Creative Bookkeepers can handle everything for you — from filing to supporting documents to full compliance restoration.
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