Archive for category: News

• 07 July: PAYE submissions and payments
• 24 July: VAT manual submissions and payments
• 30 July: Excise duty payments
• 31 July:

• • VAT electronic submissions and payments
  • CIT Provisional Tax payments where applicable

“Small is not a stepping stone. You can move. You can adjust. You can adapt. You can get it done while they’re still stuck deciding what to do.” (Jason Fried, entrepreneur and author)

When starting a small business, it’s easy to assume you don’t have all the knowledge you need to compete, and that the big, successful corporation next door holds all the keys to success. With their polished org charts, complex strategy documents, and fleets of middle managers, big corporations and their strategies can look like growth to the beginner.

This is a mistake. The truth is, big companies operate within a completely different set of constraints and economies to smaller, founder-run businesses. Understanding which big business strategies could hurt if implemented in your business, is therefore a key to survival.

Hiring for the org chart, not the work

Large corporations often hire ahead of demand. They build out departments, create roles to fill future needs, and staff up in anticipation of growth. They can afford to carry headcount. Smaller businesses cannot.

Many small business owners get caught up in the excitement of expansion, and start hiring to look like a bigger company, or in anticipation of future problems, rather than to solve a specific current issue. They add a layer of management before there’s anything to manage, or recruit a marketing team before they’ve validated what their customers actually want. The result is a payroll that grows faster than revenue, and a business that starts to take strain under the weight of salaries it was never ready to carry. As a new business, it is essential that each hire adds immediate value to the company and can justify their pay cheque from day one. If you are unsure what someone will do in their first 90 days, this is probably a hire you don’t need.

Complexity for the sake of it

Big companies love processes and reporting structures. Everything from ordering printer paper to launching a new product needs multiple meetings, committee sign-offs, and documented procedures. Some of this is necessary when you’re coordinating thousands of people across continents… But for a small team, your biggest advantage is agility.

Small businesses thrive on speed and flexibility. Your ability to make a decision at 9am and implement it by lunchtime is a genuine competitive edge over a corporate rival that needs a risk assessment before it can switch toilet paper suppliers. The moment you start building bureaucracy into your own operation (think overly formal sign-off chains, or meetings about meetings) you are denting the very quality that makes you competitive.

Spending unnecessarily on brand before earning the right

A classic mistake many growing startups make, is one that’s also obvious to any experienced business owner the second they walk into the offices. The expensive logo on frosted glass, the branded hoodies, and the slick website are all in evidence – but the pipeline runs thin and the cash flow statement speaks of desperation.

Big companies invest heavily in brand because they have proven revenue streams and established customer relationships. Brand maintenance is a legitimate line item at that scale. For a small business still finding its feet, over-investing in brand before you have a viable business is putting the cart firmly before the horse. Customers care more about whether you solve their problem better than anyone else than they do about your brand. Earn that reputation first. The brand follows from the substance, not the other way around.

Chasing revenue while ignoring cash

Publicly listed companies are accountable to shareholders who want to see top-line revenue growth. That pressure filters through to every level of a large organisation and shapes how it measures success. Revenue is celebrated; profit is secondary. For small and medium-sized businesses, this is a genuinely dangerous mindset to adopt.

In the early days, cash flow will be the ultimate difference between thriving and going bang. A client can owe you a large sum and your business can still fail if that money doesn’t arrive in time to cover your wages run.

But still, small business owners routinely chase headline revenue figures, winning bigger contracts, and pursuing growth at all costs without doing the hard work of understanding whether these sales are actually translating into cash flow, and whether the timing of receipts matches the reality of their outgoings. It is vital that you know the real numbers that will affect the day-to-day running of your business. And that you understand the difference between revenue and profit, and between profit and cash in the bank. As your accountants, we are here to help you see this clearly.

Outsourcing the customer service relationship

Enterprise businesses outsource customer service, because economies of scale demand it. For small businesses, this is a critical error, as the relationship between your business and your customers is one of the most valuable assets you possess.

When you outsource your pitches to a big agency, your customer queries to a call centre, or your social media to a junior member of staff who doesn’t really understand what you do, you lose the intimacy that made customers choose you in the first place. People buy from small businesses because they feel seen. They want the expert, not the system. Protect that connection carefully.

The bottom line is this: the best small businesses succeed by doing things that big companies structurally cannot. They move fast, know their customers personally, make smart decisions without bureaucracy, and treat every rand as precious. Lean into that while you still have it.

“The Power of Done starts with knowing when to act.” (SARS)

The 2026 Tax Season officially opens on 13 July 2026 for the 2025/2026 year of assessment, covering the period between 1 March 2025 and 28 February 2026.

During filing season, taxpayers must complete and submit their tax returns, declaring their income and deductions to allow SARS to determine their final tax liability for the period under assessment.

Dates to diarise

What’s new this filing season

• “The Power of Done”: This year SARS is inviting taxpayers to experience “The Power of Done”, a campaign that centres on Auto-Assessments. SARS says that if you agree with your auto-assessment, you don’t need to manually file a return or do anything else, truly experiencing “The Power of Done”.
• More prefilled data: More taxpayer information from third parties like employers, banks, medical schemes, insurers and retirement funds, is already pre-populated on returns, which means less time spent on capturing data and hopefully fewer mistakes.
• Stricter verification: SARS has upgraded its data-matching algorithms. So even if auto-assessed, make sure to double-check that all your data (like deductions and donations) is accurate.
• WhatsApp integration: Taxpayers can now receive their Notice of Assessment (ITA34) or Statement of Account (SOA), as well as securely upload supporting documents, directly via WhatsApp.

To be or not to be auto-assessed… Here’s what to do

Rely on our expertise for a hassle-free filing season

This is what we can do for you:

• Verify all SARS communications are legitimate to protect you from scams.
• Check that all taxpayer and banking details are correct and updated with SARS to facilitate refunds and to prevent identity theft and fraud.
• Claim every tax rebate available to you to avoid you paying more tax than required.
• Correctly prepare all required documentation early to avoid last-minute delays and to expedite a possible SARS verification or audit.
• Check auto-assessments to ensure these are correct before they are accepted.
• Ensure that your tax return submissions comply with current regulations.
• Meet all submission deadlines on your behalf to avoid penalties.

SARS has significantly increased its scrutiny of trust administration. What’s more, from the beginning of May 2026, automated administrative penalties apply to all non-compliant trusts – without exception.

Whether a trust is active or dormant, the trustees have a legal obligation to comply with SARS requirements, and the consequences of failing to do so are now immediate and ongoing.

What does trust compliance entail?

All trusts must:

• File a tax return (ITR12T) annually, whether economically active or not.
• Update and maintain trust information reflected on the SARS system.
• Maintain a detailed organogram and records of the founder, trustees, donors, and beneficiaries.
• Maintain strict records of financial statements, trust deeds, and minutes of trustee meetings.
• Submit IT3(t) returns reporting detailed information on distributions and amounts vested in beneficiaries, enabling SARS to cross-reference data with beneficiaries’ personal tax returns.
• Some trusts may also be subject to provisional tax requirements.

Who is responsible?

Trustees act as representative taxpayers of a trust in terms of the Income Tax Act and personally bear sole responsibility for ensuring full compliance.

This includes maintaining accurate trust information, ensuring that all legal and tax obligations are met, and initiating deregistration processes for trusts that meet the applicable criteria.

Consequences of non-compliance

From 4 May 2026, SARS will issue a penalty assessment notice for all outstanding trust income tax returns for tax periods from 2024 onwards.

Designed to encourage compliance, these penalties are applied consistently, recurring monthly until non-compliance is corrected. Monthly administrative penalties may range from R250 to R16,000 per outstanding return, depending on the trust’s taxable income for the preceding year and will accumulate until the non-compliance is corrected, up to a maximum of 35 months.

It doesn’t stop there. SARS may in specific circumstances hold trustees personally liable for the trust’s tax debts, and trustees are individually and jointly liable for the trust’s tax compliance.

In addition, non-compliance with SARS obligations may be regarded as a criminal offence and will attract penalties and interest. Trustees who fail to act face penalties, interest, and potential criminal charges.

What if my trust is no longer in use?

SARS requires all registered resident trusts, without exception (and certain qualifying non-resident trusts), to meet the range of ongoing obligations.

A trust’s tax compliance obligations only come to an end once it has been formally deregistered with SARS. Until this process is finalised, the trust remains active for tax purposes and is exposed to penalties for continued non-compliance.

Where a trust is no longer being used for its intended purpose, trustees are encouraged to formally terminate the trust. The first step is to regularise the trust’s tax affairs by submitting all outstanding returns, settling all tax liabilities, and updating all trust information.

Thereafter the trust can be formally terminated through the Office of the Master of the High Court. Once the Master has issued written confirmation of termination, trustees can ask SARS to deregister the trust for income tax purposes.

“Small business success in this economy isn’t about the ‘next big thing’ in tech; it’s about the ‘next small thing'” (Isabel Guzman)

It’s no secret that doing business has undergone significant overhauls over the last few years. The invention of AI, and the backlash to it, have led to an increase in automation, and, in turn, a recognition that customers are now more likely than ever to value the personal touch. It’s a grand shift that might leave many small business owners uncertain just where they should be putting their energy. So how do you not only navigate this environment but actually come out more profitable?

Taking a close look at successful small businesses, it’s easy to see that there are three pillars that are often responsible for allowing independent owners to thrive in these difficult market conditions.

1. Automating administrative friction

A clear trend has emerged where successful small businesses have started treating administrative tasks as a direct tax on their time and profit. Instead of hiring a part-time assistant or spending hours manually answering the same five questions on social media, owners are implementing “Admin-Zero” frameworks. This involves using micro-automation for customer FAQs, booking confirmations, and initial intake processes so you can focus on more personal and impactful areas.

The barrier to entry for these tools has collapsed. Even a single-chair barbershop or a mom-and-pop consultancy can now use AI-driven frameworks as efficient alternatives to conventional manual procedures. This means that employee time is being saved in countless small ways daily. Spending that time on more productive behaviour like nurturing networks or driving sales has exponential benefits.

2. Securing recurring revenue

Volatility is one of the primary enemies of small businesses. To combat this, many business owners are adopting “Service Club” memberships, a model that functions as “cash flow insurance.” Customers are being encouraged to pay a modest monthly fee to receive priority bookings, a small monthly perk, or an annual benefit or service.

This model shifts the customer relationship from transactional to relational. It ensures the business remains top-of-mind for the consumer while providing the owner with a financial safety net. In 2026, many of the businesses that thrive are those that have successfully converted a portion of their expected monthly income into a “subscriber base,” effectively insuring themselves against the quiet weeks that traditionally break a small business’ back.

Working out what incentives you can offer clients in return for long-term support should be a priority for all small business owners. Your accountant can help you to both determine what incentives you would be able to offer over the long-term, as well as assist in determining the subscription prices for these services. Remember, cash flow and the ability to maintain these offerings are essential to the scheme’s success.

3. Building loyalty loops

Marketing has also changed. Much of today’s most effective marketing isn’t happening on the algorithm, it’s happening on the sidewalk. “Neighbourhood stacking” is the practice of collaborative loyalty loops between physical neighbours. A local cafe, a boutique, and a bookstore create a closed-loop ecosystem where a purchase at one grants a specific, meaningful benefit at the others. This leverages what many call the “golden dome” of local trust.

This hyper-local synergy keeps consumer spending within the immediate community. Now, this trend is also expanding into service businesses, and through the freelancing community. For instance, a copywriter, designer and project manager may agree to offer a 15% discount on each other’s services in exchange for the initial hire of one of them.

By “stacking” their influence, small businesses create a combined value proposition that rivals the convenience and economies of scale of much larger companies. Most customers prefer to buy local – provided the price is right.

If you’re worried about the drain discounting will have on your bottom line, remember that these losses are more than mitigated by the fact that you’ve been able to reduce the cost of customer acquisition to near zero.