The tax year for individuals and provisional taxpayers runs from 1 March to the end of February. A company’s tax year follows its own financial year end, which is often February but does not have to be. Getting those two straight is the first step, because every deadline below hangs off one or the other.
This guide sets out what a small business has to submit, when, and the mistakes that cost money. Exact filing season dates are announced by SARS each year, so confirm them rather than working off last year’s calendar.
If you have employees: the payroll cycle
EMP201, monthly. Due by the 7th of the following month, covering PAYE, UIF and the Skills Development Levy. If the 7th falls on a weekend or public holiday, the deadline moves earlier, not later. This is the most commonly missed deadline in a small business and it carries penalties and interest.
EMP501 reconciliation, twice a year. The interim reconciliation covers 1 March to 31 August and is filed in the September to October window. The annual reconciliation covers the full 1 March to end February year and is filed in the April to May window. Both reconcile what you declared monthly against what you actually paid and against the certificates issued to staff.
IRP5 and IT3(a) certificates. Generated from the annual reconciliation and issued to every employee. Your staff cannot file their own returns without these, so late issue is a problem you will hear about.
The reconciliation is where errors surface. If your monthly EMP201 declarations do not add up to your actual payroll, SARS sees it here, and fixing twelve months of drift in May is considerably harder than getting each month right.
Provisional tax
If your business earns income that is not taxed at source, you are a provisional taxpayer. Three payment points matter.
The first is due six months into the year of assessment, which for a February year end means the end of August. The second is due at the end of the year of assessment, so the end of February. A third, voluntary top-up is available about seven months after year end, and it is worth using where the second estimate fell short, because it stops interest accruing on the shortfall.
Underestimating carries a penalty. Estimating conservatively and reclaiming later is usually cheaper than being optimistic and being penalised for it.
Company and VAT returns
ITR14, the company income tax return, is due within twelve months of the company’s financial year end. The return needs signed annual financial statements behind it, which is why year-end bookkeeping and the tax return are really one job rather than two.
VAT, once registered, is filed on your assigned cycle, usually every two months. Registration becomes compulsory once taxable turnover passes R2.3 million in any twelve consecutive months, a threshold that applies from 1 April 2026. Voluntary registration is possible below that and is worth considering when your customers are themselves VAT registered, since they reclaim what you charge.
Note the difference between the two: VAT is money you collected on behalf of SARS and were holding, not income. Businesses that spend it during a tight month create a problem that compounds.
The mistakes that cost the most
Treating VAT as cash flow. The most damaging error on this list, and the most common.
Claiming expenses that are not deductible. The test is that the expense was incurred in the production of income and is not of a capital nature. Private use, entertainment and fines do not qualify. Where an expense is mixed, such as a vehicle or a home office, only the business portion is claimable and you need a basis for the split.
Not keeping records for five years. That is the retention requirement, and an assessment you cannot support with documents is an assessment you will lose.
Ignoring a return because you cannot pay. Filing and paying are separate obligations. Filing late adds penalties on top of the debt, and SARS will discuss a payment arrangement on a return that has been filed. Silence removes that option.
Letting compliance status lapse. Your tax compliance status is checked by banks, funders and procurement departments. Discovering it is not clean during a funding application costs you the opportunity, not just the penalty.
Three things that make this easier
Separate the bank accounts. Business and personal money in one account turns every year end into forensic work and makes expense claims impossible to defend.
Reconcile monthly, not annually. An hour a month is less work than a week in May, and it means you find errors while you can still remember the transaction.
Put money aside as you go. A separate account holding VAT collected and an estimate of the tax due removes the annual scramble entirely. Our guide to cash flow solutions covers funding the gap when the timing does not work.
Software that keeps the records current pays for itself in avoided penalties, and a tax practitioner is worth it the moment the business has employees or VAT. What the year end itself involves is covered in our guide on what the end of the financial year means, and the wider picture in our guide to small business tax.
Frequently asked questions
When does the tax year end?
The end of February for individuals and provisional taxpayers. A company’s tax year follows its own financial year end, which is commonly February but can be another month.
When is EMP201 due?
By the 7th of the month following the payroll month. If the 7th falls on a weekend or public holiday, submit and pay before it.
What happens if I file late?
Administrative penalties and interest, and repeated non-compliance affects your tax compliance status, which banks, funders and procurement departments check. File even when you cannot pay, then arrange the payment.
How long must I keep records?
Five years. An assessment you cannot support with documents is one you will not win.
Do I need a tax practitioner?
Not necessarily for a simple business with no employees. Once you have staff or are VAT registered, the reconciliations and deadlines usually cost more in mistakes than a practitioner costs in fees.
Do this before the next deadline
Put four dates in your calendar with reminders a week ahead: the 7th of each month, the two EMP501 windows, the two provisional tax dates, and your ITR14 deadline. Then open a separate account for VAT and tax set aside monthly. Those two steps prevent most of what goes wrong here.
This article was updated in September 2026.
