The Most Common Provisional Tax Season Mistakes We See

IRP6 season comes around quickly, and for many firms, it's a cycle of stress, reminders, calculations, follow-ups, and chasing SARS deadlines. But what continues to surprise us is how many of the same mistakes creep in, year after year, no matter how experienced the team is. These aren’t always technical errors either; often, it’s the operational and procedural missteps that end up causing the most headaches.

Here’s what we’re still seeing far too often, and how your firm can stay one step ahead.

1. Estimating taxable income too conservatively. Accountants understandably want to avoid overpaying on provisional tax, but we still see firms erring too far on the side of caution. When taxable income is underestimated and actual earnings come in much higher, clients are left with penalties and interest. SARS has become stricter on underestimations, and it’s no longer enough to make a vague guess halfway through the year. Use real-time data and updated reports to base your estimates on actual performance, not assumptions.

2. Submitting too close to the deadline. It’s not just about avoiding late submission penalties. Submitting last-minute leaves no room for review, client feedback, or SARS downtime (which we all know happens). It also puts your team under unnecessary pressure. Build your process to allow for a review phase, and get client approval earlier so you're not chasing confirmations at the 11th hour.

3. Using outdated client info. It sounds simple, but working off the wrong year-end, incorrect taxpayer details, or old financial data is still a major issue, especially when juggling multiple clients. These small errors often only come to light during submission or after SARS flags them. A centralised system that stores and updates client data in one place reduces the risk of these slip-ups significantly.

4. Overlooking dormant clients or trusts. We often see dormant entities fall through the cracks until a penalty arrives. Even if a trust or company didn’t trade, it may still need an IRP6 if registered for provisional tax. Keeping a register of entities that require nil submissions and proactively managing them is essential. If you’re relying on memory or manual lists, it’s easy to miss one.

5. Not tracking who reviewed what. When a firm has multiple team members handling different phases of a tax submission, a lack of visibility becomes risky. Who did the calculation? Who reviewed it? Who approved the letter? Without a clear workflow or system to track these actions, errors can slip through the cracks, and accountability becomes blurry when something goes wrong.

6. Communication gaps with clients. We still hear firms say, “We sent the email, but they never responded.” In the busy season, email just isn’t enough. A multi-channel approach, like sending SMSs for urgent action items or using a platform where all communication history is stored, goes a long way. Clients need reminders, context, and a way to ask questions easily. The more you simplify the experience for them, the quicker you’ll get approvals and reduce back-and-forth.

IRP6s are routine, but that doesn’t mean they’re risk-free. The firms that avoid costly mistakes are the ones that focus on process, not just calculations. If you’ve found yourself fixing the same issues each year, it might be time to look at your systems, your timelines, and your internal communication. A few changes now could mean a far less stressful season ahead.