“But My Company Pays My Taxes…” — Not Quite.
“But My Company Pays My Taxes…” — Not Quite.
It’s one of the most common statements we hear:
“I don’t need to worry about tax. My company already deducts it.”
And yes — your employer does deduct PAYE (Pay-As-You-Earn) every month.
But here’s the important part:
👉 That does NOT mean your taxes are fully sorted.
👉 And it definitely doesn’t mean you’re NOT leaving money on the table.
Let’s break it down.
What Your Employer Actually Does
Your company’s role is simple:
- Calculate your salary
- Deduct PAYE based on that salary
- Pay it over to SARS
That’s it.
They do not:
- Know your full financial situation
- Track your personal deductions
- Include income from other sources
- Optimise your tax position
So while they handle the mechanics of tax, they don’t complete your tax picture.
The Problem: Missing Information
SARS calculates your final tax based on your total financial life, not just your salary.
That includes things like:
- 💊 Medical aid contributions (and dependants)
- 🏦 Retirement annuities (RAs)
- 🏠 Rental income
- 💼 Side hustles / freelance income
- 📈 Investment income
Your employer doesn’t have all of this.
Which means:
👉 Your tax may be incorrect
👉 You could be overpaying (and missing a refund)
👉 Or underpaying (and building up risk)
The “Free Money” Most People Miss
Two of the biggest areas where salary earners lose out:
1. Medical Aid Credits
If your medical aid info isn’t correctly reflected:
- You may not get the full tax credit
- Especially if you have dependants
2. Retirement Annuities (RAs)
RA contributions are tax-deductible.
But:
👉 If SARS doesn’t have the correct figures
👉 Or you don’t submit properly
You don’t get the benefit.
That’s real money left on the table.
What About SARS Auto-Assessments?
SARS has made things easier with auto-assessments.
Sounds great, right?
Well… mostly.
The Reality:
Auto-assessments are based on what SARS already knows.
If something is missing or incorrect:
- Your assessment will be wrong
- And you might not even realise it
Common issues include:
- Missing RA contributions
- Incorrect medical aid data
- Outdated or partial income records
👉 Auto-assessments are convenient — not infallible.
And Not Everyone Gets One
Another misconception:
“SARS will just auto-assess me.”
Not necessarily.
You’re less likely to receive an auto-assessment if:
- You’ve ever been a provisional taxpayer
- You have multiple income streams
- Your tax affairs are more complex
So assuming “SARS has it covered” can be risky.
The Bigger Risk: Undeclared Income
This is where things get serious.
If you earn income outside your salary — even small amounts — it must be declared.
Examples:
- A side hustle or freelance work
- Rental income from a property
- Consulting or advisory work
If this isn’t declared:
👉 SARS can impose penalties and interest
👉 They can go back several years
👉 And the cost adds up quickly
This isn’t theoretical — it happens often...
So What Should You Do?
Simple:
1. Don’t assume everything is correct
Even if:
- PAYE is deducted
- You received an auto-assessment
2. Make sure all your info is included
Especially:
- Medical aid
- Retirement annuities
- Any additional income
3. Review before you accept
That auto-assessment might look neat — but it might not be accurate.
4. Get professional help
Instead of doing this yourself, as an alternative, get a Tax Practitioner like Thornberry to assit you
And ensure that your tax affairs are in order, as well as to structure it in an optimum way
The Bottom Line
Your employer handles your payroll tax.
But your full tax position is your responsibility.
And getting it right can mean:
- 💰 A bigger refund
- ⚠️ Avoiding penalties
- 🧠 Peace of mind
Final Thought
If you’ve ever said:
“My company pays my taxes, so I’m sorted.”
You’re not alone.
But you might also be:
👉 Overpaying
👉 Under-declaring
👉 Or missing out
And none of those are ideal.
contact Thornberry today,
to make sure your taxes are in order, and that you are not overpaying on your taxes.
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