What Is a SARS Auto-Assessment?
Since 2021, the South African Revenue Service (SARS) has issued auto-assessments to qualifying taxpayers. Instead of completing a blank ITR12 return, SARS pre-populates your return using data it already holds from third parties: your employer's IRP5, your medical scheme's tax certificate, your bank's interest certificate, and your retirement annuity fund's records.
For the 2025 year of assessment (1 March 2024 – 28 February 2025), SARS will begin issuing auto-assessments from 7 July 2025. You have until 20 October 2025 to respond if you are a non-provisional taxpayer.
The Three Choices You Face
When SARS issues your auto-assessment, you have three options:
| Option | When to Use | Deadline |
|---|---|---|
| Accept | Only if all income, deductions, and credits are 100% correct | 20 Oct 2025 |
| Edit & Submit | If you have additional income, deductions, or corrections | 20 Oct 2025 |
| Do Nothing | SARS treats this as acceptance after the deadline — dangerous | Avoid |
The Most Common Auto-Assessment Errors
SARS's data is only as good as what third parties submit. The following items are frequently missing or incorrect:
1. Retirement Annuity Contributions Paid DirectlyIf you pay RA contributions directly to your fund (not via payroll), your employer's IRP5 will not reflect these. SARS will not know about them unless you declare them. The deduction can be up to 27.5% of your remuneration or R350,000 — a significant amount to leave on the table.
2. Out-of-Pocket Medical ExpensesYour medical scheme submits its data to SARS, but it only covers contributions and scheme-paid claims. Any qualifying expenses you paid yourself — co-payments, specialists, dentists, optometrists — must be declared manually to claim the additional medical tax credit.
3. Travel Allowance DeductionsIf you received a travel allowance (source code 3701 on your IRP5) and kept a logbook, you are entitled to claim actual business travel expenses. SARS's auto-assessment will not include this deduction — it must be added manually.
4. Rental Income and ExpensesSARS does not receive rental income data from landlords. If you earned rental income, it must be declared. Equally, allowable expenses (bond interest, rates, repairs) that reduce your rental profit must be claimed — they will not appear automatically.
5. Home Office DeductionsIf you worked from a dedicated home office, a proportional deduction of your home expenses is available. This is never auto-populated.
What Happens If You Accept an Incorrect Assessment?
Accepting an auto-assessment that is incorrect — even if SARS made the error — can have serious consequences:
- Underpayment: If income was missed, SARS can raise an additional assessment with interest and penalties.
- Overpayment: If deductions were missed, you lose money that was rightfully yours.
- Audit trigger: Inconsistencies between your accepted return and third-party data can flag your account for verification.
The Safe Approach: Always Review Before Accepting
At Fulcrum | BI Prime, we recommend every taxpayer treat the auto-assessment as a first draft, not a final return. Before accepting, verify:
- All IRP5 certificates are reflected correctly
- Medical aid contributions and beneficiary count are accurate
- All RA contributions are included (payroll and direct)
- Any travel allowance deductions are claimed if a logbook exists
- Rental income and expenses are declared
- Capital gains from share disposals, property sales, or crypto are included
If you are unsure whether your auto-assessment is correct, contact us before the deadline. An incorrect acceptance cannot easily be reversed after the fact.
Sources: SARS Auto-Assessment Guide | SARS ITR12 Comprehensive Guide
