Tax planning is not a once-off event. It is a year-long process that helps you stay compliant, manage cash flow, and legally minimize your tax liability. For legal and medical professionals, this is especially important because your income is often irregular, and compliance deadlines can disrupt your practice if ignored.
Here’s a month-by-month roadmap to keep your finances in order and your stress levels low.
January – Start Strong
- File your previous year’s tax return (deadline for provisional taxpayers is usually mid-January).
- Review your financial performance for the past year and set aside funds for the second provisional tax payment due end of February.
- Create a tax savings account and start transferring 25–30% of monthly revenue.
February – Year-End and Provisional Tax
- Make your second provisional tax payment by 28 February. If your taxable income is under R1 million, you can use the safe harbour rule (last year’s tax plus 8%).
- Finalize any deductible expenses or retirement annuity contributions before 28 February to reduce taxable income.
- Review VAT obligations and ensure your VAT201 returns are up to date.
March – New Tax Year Begins
- Update payroll tax tables for PAYE and UIF.
- Start a fresh vehicle logbook if you claim travel deductions.
- Review your compliance calendar for HPCSA fees (due 1 April) and other professional renewals.
April – Compliance Check
- Review your VAT cycle and ensure you are filing on time.
- Consider tax-free savings account (TFSA) contributions for long-term tax-free growth.
May – Payroll Reconciliation
- Submit your EMP501 annual reconciliation by 31 May.
- Issue IRP5 certificates to employees.
- Review your payroll processes to avoid penalties.
Mid-Year (June–August) – Provisional Tax Prep
- Prepare for the first provisional tax payment due 31 August.
- Review income and expenses for the first half of the year.
- Check if you qualify for Small Business Corporation (SBC) tax rates for reduced tax liability.
September – Optional Third Provisional Payment
- If you underpaid in February, make a top-up payment by 30 September to avoid interest.
- Review your VAT and PAYE compliance.
October–December – Year-End Planning
- Plan equipment purchases or investments for tax efficiency.
- Review retirement contributions and TFSA limits.
- Ensure compliance for trust audits (lawyers) and professional licenses for the next year.
Key Tax Areas to Monitor Year-Round
- VAT: Register if turnover exceeds R1 million. Consider cash basis if eligible.
- PAYE and UIF: Pay by the 7th of each month. Use payroll software or outsource.
- Tax-Free Savings Accounts: Contribute up to R36,000 annually for tax-free growth.
- Retirement Annuities: Deduct up to 27.5% of taxable income.
- SBC Status: Check eligibility for lower corporate tax rates.
Final Thoughts
Tax planning is about consistency, not last-minute panic. By following this roadmap and working with a trusted tax professional, you can stay compliant, protect your cash flow, and optimize your tax position.
At Nuvia, we simplify the complex. You focus on your patients or clients, we handle the tax maze.
Your business, simplified.
Ready to plan your 2026 tax strategy?
Contact us today.