📆 May Is Provisional Tax Prep Month – Are You Ready for Your Second Payment?

If you’re a provisional taxpayer in South Africa, May isn’t just another month — it’s your financial check-in before the second provisional tax payment deadline on 31 August 2025.

While the payment itself is only due in August, May is the perfect time to prepare. At Horizon Trading Solutions, we encourage our clients to use this month to evaluate earnings, reduce surprises, and take advantage of tax strategies before it’s too late.

Here’s what every provisional taxpayer should know right now.

🤔 First, Are You a Provisional Taxpayer?

You’re likely a provisional taxpayer if:

• You earn income outside of formal employment, like rental income, freelance work, investments, or business profits.

• You receive director’s fees, trust income, or capital gains.

• You are not taxed through the standard PAYE system.

If that sounds like you — and your taxable income exceeds R30,000 (R90,000 for senior citizens) — then SARS expects two provisional tax payments each year: one by end of August, the second by end of February, and an optional third (top-up) in September.

📌 Why May Matters

While the first provisional payment (due August) is based on an estimate of what your annual income might be, May is when you start to see how your financial year is shaping up.

Here’s why May is the ideal time to act:

• ✅ You have 3+ months to gather documentation and adjust your income projections.

• ✅ You can legally reduce your provisional tax liability if your income is down this year.

• ✅ You can still contribute to retirement annuities or tax-free savings accounts, which reduce your taxable income.

• ✅ Waiting until August often leads to rushed estimates and missed deductions — or even underestimation penalties.

📊 How to Prepare Like a Pro

Use May to run a provisional tax simulation with your accountant or tax practitioner. Here’s what we recommend at Horizon Trading Solutions:

1. Update your bookkeeping and reconcile all income streams.

2. Project your taxable income for the full tax year (ending February 2026).

3. Factor in deductions, such as medical aid credits, RA contributions, business expenses, and wear-and-tear allowances.

4. Identify tax risks, like underpayments from the first provisional period.

5. Plan your cash flow for the upcoming August deadline.

We use this opportunity with our clients to strategize, not just comply. Tax planning done in May gives you a huge advantage by August.

⚠️ The Risk of Waiting

If you wait until August to get your ducks in a row, you may face:

• Penalties for underestimating your tax (especially if your estimate is below 90% of the actual tax payable).

• Interest charges on late payments.

• Lost opportunities for legal tax deductions you simply forgot to claim in time.

👥 How Horizon Trading Solutions Can Help

At Horizon Trading Solutions, we don’t just help you submit your provisional tax — we help you understand it, minimize it, and plan around it.

Our Provisional Tax Service includes:

• Income and expense forecasting

• Deduction optimization

• SARS-compliant calculations

• Peace of mind through expert handling

💬 Final Thoughts

May is your buffer zone. Use it wisely.A bit of planning now can prevent a lot of panic later — and potentially save you thousands in unnecessary tax. Whether you’re a freelancer, business owner, or investor, Horizon Trading Solutions is here to help you make tax time stress-free.

👉 Book a consultation today to get a head start on your August provisional tax submission.