7 Common Tax Return Mistakes to Avoid in South Africa | SARS 2026
Quick Answer: What Are the Most Common SARS Tax Return Mistakes?
The most common mistakes taxpayers make when submitting their South African income tax returns include incorrect personal information, missing tax deductions or credits, incomplete supporting documents, late filing, undeclared income, incorrectly answering SARS questions and misunderstanding how different income sources should be declared.
These mistakes can result in incorrect assessments, delayed refunds, additional tax payable, penalties or SARS verification and audits.
For Filing Season 2026, taxpayers are declaring income earned during the 2026 year of assessment, from 1 March 2025 to 28 February 2026.
The good news is that many mistakes can be prevented by carefully reviewing your information before submitting your ITR12 tax return.
And where a mistake has already occurred, SARS provides correction and dispute procedures, depending on the circumstances.
1. What Happens If Your Personal Information Is Incorrect?
One of the simplest mistakes taxpayers make is failing to keep their personal information up to date with SARS.
This includes:
- Banking details.
- Residential and postal addresses.
- Contact details.
- Identification information.
- Marital status and other relevant registered particulars.
Incorrect banking information is particularly problematic when SARS owes you a refund. The law requires the tax payer to update their details within 30 days of change.
Example
Suppose SARS assesses your 2026 tax return and determines that you are entitled to a refund of R8,000.
However, the banking details registered with SARS are outdated.
Even though your assessment reflects a refund, payment may be delayed while the banking information is corrected and verified.
How to Avoid This Mistake
Before submitting your return, check that your personal information is correct on SARS eFiling.
If your banking details have changed, follow the SARS process for updating and verifying them.
Practical tip: Updating your banking details does not necessarily mean SARS will immediately release a refund. Outstanding returns, tax debts, verification or other compliance matters may also affect payment.
2. Are You Missing Tax Deductions or Tax Credits?
Another common mistake is overlooking qualifying deductions and tax credits.
This can result in paying more tax than necessary.
However, it is important to understand the difference between a tax deduction and a tax credit.
A tax deduction generally reduces your taxable income.
A tax credit reduces the tax calculated, subject to the applicable rules.
Example: Retirement Annuity Contributions
Suppose your taxable income before a qualifying retirement fund deduction is R500,000.
During the year, you contributed R50,000 to a retirement annuity.
Assuming the full contribution qualifies for deduction:
Taxable income before deduction: R500,000
Less qualifying retirement contribution: R50,000
Taxable income after deduction: R450,000
SARS calculates the relevant income tax on R450,000 rather than R500,000, assuming no other adjustments.
The R50,000 contribution does not mean SARS owes you a R50,000 refund.
Any refund depends on your final tax liability compared with PAYE and other tax payments or credits already applied.
Common Deductions and Credits to Review
- Qualifying retirement fund contributions.
- Medical scheme fees tax credits.
- Additional medical expenses tax credits, where applicable.
- Qualifying Section 18A donations.
- Business expenses where permitted.
- Qualifying travel expenses supported by the required records.
- Home-office expenses where the statutory requirements are met.
How to Avoid This Mistake
Review your tax certificates and supporting documents before submitting your return.
Pay particular attention to medical expenses paid out of your own pocket that were not reimbursed by your medical scheme.
Remember: Not every expense you personally incur qualifies for a tax deduction.
3. What Happens If You Don’t Keep Supporting Documents?
Submitting your tax return is only part of the compliance process.
SARS may request supporting documents to verify the information declared.
If you cannot substantiate a deduction or credit, SARS may disallow it, which could increase your tax liability.
Example: Travel Allowance Without a Logbook
Suppose you receive a travel allowance and claim qualifying business travel expenses.
SARS requests a logbook showing your business kilometres travelled during the year.
If you cannot provide adequate records, your travel expense claim may be disallowed.
This could result in additional tax payable.
What Records Should You Keep?
Depending on your circumstances, these may include:
- IRP5/IT3(a) certificates.
- Retirement annuity contribution certificates.
- Medical scheme tax certificates.
- Medical invoices and proof of payment.
- Travel logbooks.
- Section 18A donation receipts.
- Rental income and expense schedules.
- Business expense invoices and supporting records.
- Investment and capital gains tax records.
How Long Should You Keep Tax Records?
As a general rule, taxpayers must retain relevant records for at least five years, although longer retention may be required in certain circumstances, including where returns remain outstanding or disputes, audits or investigations are ongoing.
How to Avoid This Mistake
Keep your supporting documents organised throughout the year.
If documents are missing, request copies from the relevant employer, medical scheme, financial institution or supplier.
Do not invent amounts or claim expenses that cannot be adequately substantiated.
4. What Happens If You Submit Your SARS Tax Return Late?
Missing a SARS filing deadline can result in administrative penalties and other compliance consequences.
For the 2026 filing season, the key individual filing dates are:
| Taxpayer category | Filing period |
|---|---|
| Auto-assessments | 1–12 July 2026 |
| Non-provisional individuals not auto-assessed | 13 July–23 October 2026 |
| Provisional taxpayers not auto-assessed | 13 July 2026–22 January 2027 |
What Happens If You Miss the Deadline?
Depending on the circumstances, SARS may impose administrative non-compliance penalties.
These penalties can recur while the relevant non-compliance remains unresolved.
Late payment of tax can also have separate interest or penalty consequences where applicable.
How to Avoid This Mistake
Check whether you are required to submit an income tax return and identify the deadline applicable to you.
If you have already missed a deadline, address the outstanding return promptly.
Where penalties have been imposed, determine whether you qualify to request remission under the applicable rules.
Important: Not every taxpayer has the same filing deadline, and receiving an auto-assessment does not necessarily mean that no further action will ever be required.
5. Have You Declared All Your Income to SARS?
One of the more serious mistakes taxpayers make is assuming that SARS only needs to know about income reflected on an IRP5.
Your income tax return may need to include income from several sources.
These can include:
- Employment income.
- Freelance or consulting income.
- Rental income.
- Business income.
- Investment income.
- Foreign income.
- Taxable capital gains.
- Other taxable receipts or accruals.
Whether a particular amount is taxable depends on the applicable legislation and your circumstances.
Example: Salary Plus Rental Income
Suppose you earn:
Annual employment income: R400,000
Gross rental income: R120,000
Your gross income from these sources totals R520,000, before considering the applicable tax treatment and any qualifying rental deductions.
You should not assume that SARS will only assess the R400,000 employment income because your employer has already deducted PAYE.
The rental activity must also be considered in determining your taxable income.
What If You Have Two Employers?
This is another common problem.
Each employer generally calculates PAYE based on the remuneration it pays you.
When SARS assesses your annual return, it considers your combined taxable income.
This can result in additional tax payable where the PAYE deducted separately was insufficient.
However, simply changing employers and receiving two IRP5 certificates does not automatically mean that you will owe SARS.
How to Avoid This Mistake
Prepare a complete schedule of all your income sources.
Compare it with the information pre-populated on your ITR12.
Do not assume that information missing from your SARS return does not need to be declared.
6. What If You Answer SARS Tax Return Questions Incorrectly?
When completing your ITR12, SARS asks questions that determine which sections of the tax return are displayed.
Answering these questions incorrectly may cause relevant sections to be omitted or unnecessary sections to appear.
Example
Suppose you received rental income during the 2026 tax year.
However, when completing your tax return questionnaire, you indicate that you did not receive rental income.
The relevant rental income section may not appear as expected.
If you proceed without correcting the questionnaire, your return could be incomplete.
How to Avoid This Mistake
Read every question carefully.
Make sure the answers reflect your actual circumstances for the tax year being assessed.
Where you are unsure what SARS is asking, seek clarification before submitting your return.
Practical tip: Do not simply copy your answers from a previous year’s tax return. Your circumstances may have changed.
7. Are You Declaring Your Income Under the Correct Tax Category?
Not everyone who receives an IRP5 is necessarily in the same tax position.
For example, someone who earns a salary as an employee may be subject to different deduction restrictions from someone who genuinely carries on an independent trade.
Similarly, a freelancer or independent contractor may have income and qualifying business expenses that need to be disclosed in the appropriate sections of the ITR12.
Example: Freelancer With Business Expenses
Suppose a freelance graphic designer earns:
Business income: R300,000
Qualifying deductible business expenses: R60,000
Simplified taxable trade income before other adjustments:
R300,000 − R60,000 = R240,000
However, the taxpayer must first establish that the expenses are deductible under the applicable tax rules.
Not every person described as a contractor qualifies to claim the same expenses.
How to Avoid This Mistake
Understand whether your income arises from employment, independent trade, rental activities or other sources.
Declare the income in the correct sections of your tax return and claim only those deductions legally available to you.
Do not assume that being labelled a freelancer automatically makes every work-related expense deductible.
What Should You Do If You’ve Already Made a Mistake on Your SARS Tax Return?
Discovering an error after submitting your return does not necessarily mean the mistake cannot be corrected.
However, the correct procedure depends on the status of your assessment and the nature of the error.
Step 1: Review Your Notice of Assessment
Check your ITA34 to understand how SARS assessed your return.
Compare the assessment with the information and supporting documents you submitted.
Step 2: Determine Whether a Request for Correction Is Available
Where permitted, SARS provides a Request for Correction (RFC) process through eFiling.
This may allow you to correct information on a previously submitted return.
However, an RFC is not available in every situation, particularly where certain verification, audit or dispute processes apply.
Step 3: Consider the Appropriate Dispute Procedure
If you disagree with an assessment rather than merely needing to correct information, the appropriate process may involve a request for reasons or an objection, subject to the applicable requirements and deadlines.
Step 4: Keep Supporting Documents
Any correction or dispute should be supported by accurate information and relevant documentation.
Step 5: Seek Professional Assistance Where Necessary
If the mistake involves undeclared income, incorrect deductions, significant amounts or an ongoing SARS verification or audit, professional assistance can help you determine the appropriate process.
Practical Tip from Eva Financial Solutions
Before clicking Submit on your SARS tax return, ask yourself five questions:
- Have I declared all my income, including amounts not appearing automatically on eFiling?
- Have I checked every IRP5 and third-party tax certificate?
- Have I included all qualifying deductions and tax credits?
- Can I support every material claim with appropriate records?
- Have I reviewed the estimated assessment and understood whether SARS may owe me a refund or whether I may need to pay additional tax?
Spending a little more time reviewing your return can help prevent unnecessary corrections, verification delays and unexpected assessments.
Frequently Asked Questions About SARS Tax Return Mistakes
Can I correct a tax return after submitting it to SARS?
Yes, in certain circumstances. SARS provides a Request for Correction process, but its availability depends on the status of the return and assessment. Where an RFC is unavailable, another procedure may be required.
Will SARS penalise me for making a mistake on my tax return?
Not every mistake automatically results in a penalty. However, penalties, interest or other consequences may arise depending on the nature of the error and the applicable tax legislation.
What happens if I forget to declare income?
You may need to correct your return or address the matter through the applicable SARS process. Undeclared taxable income can result in additional tax and potentially interest or penalties.
Can I claim a deduction without supporting documents?
You must be able to substantiate claims where required. SARS may disallow deductions or credits that cannot be adequately supported.
Can a mistake delay my SARS refund?
Yes. Incorrect banking details, discrepancies in declared information, verification, audits and other compliance matters may delay payment of a refund.
Does SARS automatically include all my tax information?
SARS receives information from employers, financial institutions, medical schemes and other third parties. However, pre-populated information may be incomplete or incorrect. You remain responsible for checking your return.
Can I still get a refund if I made a mistake?
Possibly. A refund depends on the final assessed tax liability compared with tax already paid and applicable credits. Correcting an error does not automatically create a refund.
What tax year does Filing Season 2026 cover?
The 2026 tax year covers 1 March 2025 to 28 February 2026.
Avoid Tax Return Mistakes Before They Become Expensive
Filing your tax return correctly is about more than submitting information before the SARS deadline.
It requires understanding your income, checking your tax certificates, identifying qualifying deductions and credits, and maintaining proper supporting records.
A small mistake can lead to an incorrect assessment, delayed refund or additional tax payable.
The best approach is to review your tax position carefully before submission and address any errors through the appropriate SARS process.
At Eva CFO t/a Eva Financial Solutions, we assist individuals, freelancers and business owners with income tax returns, tax calculations, SARS verifications and tax compliance matters.
Need assistance with your 2026 tax return or correcting an error on a previous return?
Contact Eva Financial Solutions for professional tax assistance.
Disclaimer
This article provides general information about South African tax compliance and should not be considered personalised tax or legal advice. Tax treatment, filing obligations, penalties and correction procedures depend on individual circumstances and the legislation applicable to the relevant year of assessment.