Many taxpayers are left frustrated when SARS appears to tax the same income twice. Whether it is a year-end payroll adjustment, a leave payout when changing jobs, or additional tax linked to a travel allowance, these situations often feel unfair and can create the impression that SARS is taking more than their fair share.
Why your payslip changes at year-end
PAYE deductions are based on estimates. Employers are required to deduct tax monthly based on projected annual earnings, but circumstances can change. Salary increases, bonuses, backdated allowances, payroll corrections, or fluctuating benefits can all affect an employee’s final tax position. This is why some employees receive tax refunds at year-end while others experience larger-than-expected deductions on their February payslips when payroll records are finalised, and IRP5 certificates are prepared.
Why changing jobs can result in additional tax
Another common source of confusion arises when employees change jobs. Many assume that tax deducted from a leave payout or other termination benefit represents their final tax obligation. However, SARS assesses your total taxable income for the entire tax year. If your new position comes with a significantly higher salary or you receive additional income from investments or capital gains, your overall tax liability may increase, resulting in a further amount becoming payable on assessment.
Why travel allowances affect your tax
Travel allowances and company fuel cards can create similar surprises. Because these benefits form part of taxable income, periods of increased travel expenditure may result in higher PAYE deductions during certain months. Depending on your overall earnings, this can affect your tax bracket and your monthly cash flow until your final tax return is submitted and assessed.
The importance of planning ahead
While these situations may feel like double taxation, they are usually the result of provisional tax calculations being adjusted once your full financial picture is known. Understanding how these rules work can help you budget more effectively, avoid unexpected tax liabilities, and make informed financial decisions throughout the year.
Contact our team if you need assistance understanding your tax assessment, reviewing payroll-related tax issues, or planning ahead for future tax obligations.
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