5 Common Mistakes SARS Makes in Auto-Assessments — And Why You Shouldn’t Blindly Accept Them.

SARS first introduced Auto-Assessments in 2020 to make filing faster and more efficient.Every year, when tax season opens in South Africa, thousands of taxpayers receive SMSes from SARS notifying them of their auto-assessment. On the surface, it seems convenient: no forms, no stress — just accept and move on.

But here’s the truth: SARS doesn’t always get it right.
In fact, accepting your auto-assessment without checking can cost you money — sometimes thousands of rands — in missed deductions or over-reported income.

Below we explore 5 common mistakes SARS makes in auto-assessments, with real examples, and why it’s crucial to double-check before clicking “accept”.

Missed Medical Expense Deductions

One of the most common oversights in auto-assessments is underestimating your medical expenses.
SARS usually pulls information from your medical aid, but it often excludes:

• Out-of-pocket payments you made directly to doctors, dentists, or pharmacies.
• Medical expenses not covered by your medical aid.

Example: You paid R5,000 to a specialist for treatment not claimed through medical aid. If not added, you lose out on the tax credit.

Tip: Always keep receipts and submit these manually if they’re missing.

Excluding Retirement Annuity Contributions

Many people contribute to private retirement annuities (RA) through debit orders, and these don’t always appear on your IRP5 or SARS records.
If SARS doesn’t include these contributions, you miss out on a valuable deduction — up to 27.5% of taxable income (capped).

Example: You contributed R3,000/month to an RA, but SARS only shows your employer’s contributions. That’s R36,000 in deductions potentially missed!

Tip: Get your RA tax certificate from your insurer and check it’s included.

Overstated or Incorrect Income

Sometimes SARS includes income that’s no longer valid or counts it twice, especially if you:

• Changed jobs mid-year.
• Received a severance package or payout incorrectly categorized.
• Have investments or foreign income that was already declared.

Example: A taxpayer noticed SARS included two IRP5s from the same employer due to a payroll error, inflating income and taxes owed.

Tip: Verify that all income sources listed are accurate and up-to-date.

Missing Travel Allowances or Business Expenses

If you receive a travel allowance or work-from-home expenses, SARS often defaults to zero unless you submit a logbook or receipts.
Without these, SARS assumes you owe more tax because deductions aren’t claimed.

Example: You drove 15,000 km for work, but because you didn’t submit a logbook, SARS calculated no deduction — leaving you with a higher bill.

Tip: Keep a detailed logbook and claim allowable expenses manually.

Overlooking Donations to Approved Charities

Donations to registered Public Benefit Organisations (PBOs) are deductible (up to 10% of taxable income), but SARS sometimes misses these if the PBO hasn’t submitted data, or if you donated directly without a Section 18A certificate.

Example: A taxpayer donated R10,000 during the year, but SARS’ auto-assessment didn’t include it. By manually claiming, the taxpayer reduced their tax payable.

Tip: Always ask for your Section 18A certificate and upload it if not reflected.

Why You Should Always Double-Check

The auto-assessment is based only on data SARS has received — it doesn’t account for:

• Receipts or claims they haven’t been sent.
• Errors in employer submissions.
• Your unique circumstances.

Blindly accepting an incorrect assessment means:
1. You might pay more tax than you need to.
2. You could lose out on valuable deductions and credits.
3. It might take months to fix errors after acceptance.

What You Can Do Instead

• Download your auto-assessment and review all income, deductions, and credits.
• Compare it to your own records and certificates.
• Submit a correction or file your own return if anything is missing or incorrect.

If you’re unsure, consult a tax practitioner who can help you uncover hidden savings and avoid mistakes.

Final Thoughts

SARS’ auto-assessments are designed for convenience, but not perfection. Taking a few minutes to review your return could save you significant money and stress.

Don’t let SARS decide your tax fate — take control and make sure you’re only paying what you truly owe.