Tshepo Khoza, Registered Tax Practitioner

What is a SARS Auto-Assessment? (And Should You Accept It?)

SARS sent you an auto-assessment? It's convenient, but often wrong. Learn the risks of accepting it and why you MUST check it for missed deductions.

Black woman holding a mug looking at a computer

In July, at the start of tax season, you might get an SMS from SARS saying: "Good news! Your tax assessment has been pre-calculated. You can view and accept it on eFiling."

This is a SARS Auto-Assessment.

SARS is trying to simplify tax season by completing your return for you. They use data they receive from third parties:

  • Your employer (your IRP5)
  • Your bank (your interest income certificate - IT3b)
  • Your medical aid (your medical certificate)
  • Your retirement annuity fund (your RA certificate - IT3f)

SARS runs the numbers and issues an assessment (an ITA34). If you're due a refund, it might even be paid out within 72 hours. It feels easy, fast, and convenient.

So, the big question is: should you just accept it?

WARNING: Do NOT Accept an Auto-Assessment Without Checking It

Accepting the auto-assessment is convenient, but it is extremely risky.

Why? Because the data SARS has is almost always incomplete.

The taxpayer—that's you—is 100% responsible for the accuracy of the final return. If you accept an incorrect assessment, you are the one who will face penalties, not SARS.

What Do Auto-Assessments Usually Miss?

SARS's data only tells half the story. It doesn't know about:

  • Your Deductions:
    • Home office expenses (rent, internet, electricity)
    • Donations to charities (Section 18A certificates)
    • Personal travel logbook claims
    • Wear-and-tear on your work laptop
    • Accounting fees
  • Your Other Income:
    • Freelance or "side-hustle" income
    • Rental income from a property
    • Capital gains from selling shares or crypto

The Two Big Risks

Risk 1: You Lose Money (You Overpay Tax)

Scenario: You get an auto-assessment that says you are due a R500 refund. You accept it.

What you missed: You forgot to add your R50,000 in RA contributions. If you had edited the return and added this deduction, you would have been due a R15,000 refund.

Result: By accepting the "easy" R500, you just lost out on R14,500.

Risk 2: You Get Penalised (You Underpay Tax)

Scenario: You get an auto-assessment that says you owe R0. You accept it.

What you missed: You "forgot" to declare R100,000 in freelance income that SARS didn't know about.

Result: A year later, SARS audits you. They discover the omission. You are now liable for the original tax on the R100,000 plus a 100% (or more) understatement penalty and interest. Accepting the auto-assessment is not a defence.

What You MUST Do

If you get an auto-assessment SMS, follow these steps:

  1. Log in to SARS eFiling.
  2. Do NOT click "Accept."
  3. Click "Edit Return."
  4. This opens your ITR12, pre-filled with SARS's data.
  5. Carefully review every section.
  6. Add your missing income: Go to the "Local Business and Freelance" or "Rental Income" sections.
  7. Add your missing deductions: Go to "Other Deductions" and add your home office, logbook, donations, etc.
  8. Once you are 100% sure the return is complete, click "Calculate" and then "Submit."

An auto-assessment is a helpful starting point, but it is not the final product. Trust, but verify.

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