Disagree with Your SARS Auto-Assessment? Here’s What to Do

Three professionally dressed individuals standing in an office environment, smiling and holding large letters that spell out “TAX”—symbolizing tax-related matters, suitable for a blog about understanding or challenging SARS auto-assessments.

Each year, SARS issues auto-assessments to thousands of South African taxpayers. While this system is designed to streamline the filing process, it doesn’t always get it right. And when it doesn’t, you’re the one who might pay the price—literally.

If you believe your income tax auto-assessment is incorrect, it’s essential to know what steps to take and what to look out for before accepting or ignoring it.

What Exactly Is an Auto-Assessment?

SARS uses information from third parties—like your employer (IRP5), bank (interest earned), medical aid provider, and retirement fund—to auto-generate your income tax assessment. It might seem convenient, but if the data is incomplete or outdated, you could lose out on legitimate deductions or even face penalties down the line.

 

Why You Shouldn’t Just Accept It Without Checking

 

 

While auto-assessments work well for some, many taxpayers find that certain expenses or income sources are missing or misclassified. You should be especially cautious if any of the following apply to you:

  • You have a travel allowance or use your personal vehicle for work
  • You contribute to a retirement annuity fund outside your employer scheme
  • You pay medical expenses out-of-pocket, not just through your medical aid
  • You work partially from home and may qualify for home office deductions
  • You received bonuses, commission, or freelance income
  • You changed jobs or had multiple employers during the year
  • You made donations to registered PBOs or tax-free investments

SARS may not have access to all the relevant documents or properly classify the amounts—leaving you under- or over-taxed.

How to Dispute or Edit Your Auto-Assessment

    1. Log into SARS eFiling or the MobiApp – Access your auto-assessment under your tax return section.
    2. Review the Prepopulated Data – Check all income, deductions, and credits against your IRP5, payslips, bank statements, and certificates.
    3. Edit and File Your Return. If you find any discrepancies or missing deductions, you can override the auto-assessment by submitting a corrected ITR12 return.
    4. Submit Supporting Documents (if prompted) – SARS may request documentation for any changes you make. Always keep medical aid certificates, travel logbooks, and proof of expenses on file.
    5. Act Before the Filing Deadline – Don’t wait until the last minute. The individual tax season typically runs from July to October, but dates may vary from year to year. Check the SARS website or your eFiling portal for updates.

Payslip Items That Commonly Cause Errors

Some employer allowances and deductions are often misunderstood or misreported in the auto-assessment:

  • Travel Allowance – SARS will assume it’s 100% taxable unless you submit a valid logbook.
  • Bonuses and Commission – May result in incorrect PAYE calculations if not annualised correctly.
  • Employer Retirement Contributions – Sometimes underreported, reducing your deductible benefit.
  • Group Life Insurance or Fringe Benefits – Can impact your taxable income if not coded correctly.

These are just a few of the items we regularly pick up during our reviews

Need Help Reviewing Your Assessment?

At On Q Accounting and Tax Services, we offer professional assistance with reviewing and correcting your SARS auto-assessment. While this is not a free service, we aim to ensure that:

  • Your income and deductions are correctly reflected
  • You don’t miss out on legitimate tax savings
  • You avoid unnecessary penalties or interest

Let us help you take the guesswork out of your tax season. Reach out to us today for a quote or to book a review consultation.

Disclaimer: This article is intended for general information purposes and does not constitute legal or tax advice. For tailored assistance, please consult a registered tax practitioner.