Updated: Mar 11, 2020
The provisional tax deadline is at the end of February and the responsibility of paying it on time, rest with each individual payer.
But life happens. You were busy with your business, the kids got sick, you were travelling or you had other family responsibilities and you missed the deadline. We get that. Before we tell you how we can still assist with late or incorrect payments, let’s discuss the reality of penalties in missing a tax deadline:
Late payments are subject to a penalty of 10%.
This 10% gets added to the of total tax amount payable. SARS will also add on interest per month. This interest is higher than normal interest at 10.25% (2020).
This means that, if for example, you needed to pay R10 000 in tax you will be charged a total of R1 000 (10% penalty) + the interest of 10.25% for each month (and everyday) you are late in your submission. Yes, you read that right, the penalty kicks in the very first day after the deadline.
So it is really pretty important that you get your tax seen too as soon as you can. We suggest you get on our mailing list, so you never miss another deadline (deadlines are end February and end of August each year for individuals. For companies it is 6 months for the 1st, and 12 months for the 2nd return, after the start of your financial year). We send out mails to all our clients, reminding them of deadlines and guidelines on what is required.
You might have been able to fill in your submission, BUT you did it wrong….
What happens if you DID pay, but you kinda thumb sucked a figure and underestimated your provisional tax?
In an attempt to get accurate tax submissions, SARS imposes hefty penalties on incorrect figures. This is called “under-estimated penalties”. The idea is to estimate a figure as close as possible, we have 20% grace to play with.
As you can see, it is not the end of the world if you are late or not accurate with Provisional Tax submissions, but it is in your best interest to get it right the first time. We all would like to save money, and avoiding penalties are a good way to start. Why pay more than you need to?
Firstly, if you are late with your submission, you can contact Mint Accounting and with some help from you, we will get your submission in as soon as possible. We will also be able to give you an estimate on what the charges will be PLUS, we will add you to our contact list and inform you of any future deadline in advance, so you never miss a deadline again. Secondly, if your submission was incorrectly calculated, we would suggest you get in touch with us. We work with tax everyday and will gladly assist in getting your submissions as accurately as possible.
So if you fall in either of these categories and you are in for penalties from SARS, let’s get you on track and save you some money! Contact us today: email@example.com