Momentum tax filing warning for South Africans

Experts warned that many South Africans make costly financial mistakes after tax season by failing to review their key details – a crucial step that can prevent serious gaps and ensure long-term financial security.

For many South Africans, the end of tax season brings relief. However, Thinus Marais, Financial Adviser at Momentum Financial Planning, said that people should treat this time as an opportunity.

“Although this marks the finish line of their annual financial duties in most people’s opinion, in reality it should be the starting point for the most important financial exercise of the year.”

“Taxes force us to assess our money situation, but they only provide a retrospective view. The real, strategic value lies in interpreting what those numbers mean for your future.”

According to Marais, the end of tax season is the perfect prompt to schedule a full financial reality check with a financial adviser. This is a necessary step to ensure compliance is turned into long-term wealth.

“Tax filing is a tactical exercise; it checks the box for SARS. Financial planning, however, is strategic. When you rush through tax season, you often overlook critical, long-term decisions that can cost you far more than a missed deduction.”

An important consideration for taxpayers is insurance gaps and salary shifts. People who have received a promotion, started a side hustle, or switched jobs should see their new income reflected in their tax forms.

However, Marais pointed out that people often fail to update their life and disability cover. “If your income has increased by R20,000 a month since your last review, your current cover may be dangerously inadequate.”

“A major life event would leave your family receiving a payout that reflects your old, lower income, completely derailing their financial security.”

A financial advisor will use a client’s latest tax data as proof of new income to ensure their cover matches your actual lifestyle.

Don’t overlook these details

According to Marais, taxpayers also tend to overlook key information related to their retirement savings, since tax season often leads to a last-minute scramble to maximise retirement annuity (RA) contributions to secure a deduction.

“This rush often misses the bigger picture, including whether your contributions are properly structured. Are you maximising the tax-free growth benefits?”

He said that an advisor can help consumers analyse their annual income and optimise their contributions early in the new tax year.

This will ensure they hit the maximum possible tax deduction strategically, rather than just nervously making a lump sum payment on the deadline.

The final aspect of tax returns that is often overlooked are major life changes such as marriage, divorce, or having a child.

Even though these events are central to a person’s tax status, Marais said they are often ignored in the context of someone’s broader estate.

“Forgetting to update beneficiary nominations on your retirement funds, life policies, or even your will is a common mistake.”

“Tax data reminds you of life’s changes, but only a full review with your adviser will confirm that the right people will receive your assets should the unexpected occur.”

He warned that an outdated beneficiary nomination can lead to legal battles and delay essential funds for a taxpayer’s loved ones.

“More than calculating returns, the core value of your financial adviser lies in providing clarity and direction,” Marais explained.

This concept is central to Momentum’s Science of Success, which unpacks the vital role advisers play in helping South Africans turn financial goals into lasting security

“Tax time is a necessary process, but a financial check-in with your financial adviser is a strategic opportunity,” he stressed.

“Don’t let that post-tax relief turn into long-term regret. Contact your financial adviser to schedule your post-tax-season focus session.”