IRP6 Provisional Tax Worksheet for Freelancers

Provisional tax requires freelancers to estimate annual income twice a year - at the end of August (first period) and the end of February (second period) - and pay advance income tax based on that estimate (SARS: Provisional Tax, 2024). Getting the estimate right with irregular income and no employer doing the calculation means working from organised records rather than guesswork.

Key Takeaways

IRP6 due dates: end of August (first period) and end of February (second period), with an optional third payment by end of September.

Safe harbour: if your estimate equals the prior year’s assessed taxable income (the “basic amount”), SARS generally does not charge an underestimation penalty.

The basic amount escalates by 8% if more than 18 months have passed since the assessed year.

Always keep a copy of the submitted IRP6, eFiling confirmation, and proof of payment together with your working papers.

What this checklist is for

This structured checklist is for freelancers completing an IRP6 provisional tax return on SARS eFiling. It gathers the figures, assumptions, and supporting proof needed before you open eFiling. It does not calculate tax - it organises the inputs (SARS: eFiling).

Income estimate checklist

Before estimating taxable income, work through these:

List all invoices issued and payments received for the provisional period.
Include retainers, platform income, once-off projects, and recurring client payments.
Separate refunds, credit notes, deposits, and non-income transfers from actual trading income.
For the first provisional return (August): estimate expected income for the full tax year based on the first six months plus a reasonable projection for the rest.
For the second provisional return (February): refine the estimate using actual figures received to date - you have more real data to work with.
Keep a note explaining any large increase or decrease from the prior year - SARS may query unusual swings between IRP6 estimates and the final ITR12.

Expense estimate checklist

Group supported business expenses by category: equipment, software, professional fees, marketing, travel.
Keep invoices and proof of payment for each material expense.
Clearly separate private costs from business costs - only the business portion is deductible.
Document any apportionment where a cost covers both personal and business use (phone, internet, vehicle, home office).
Check whether capital items (computers, equipment) need to be treated as capital allowances over their useful life rather than expensed immediately (SARS: Capital Allowances).

The safe harbour: using the basic amount

The “basic amount” is your taxable income as assessed by SARS for the preceding year of assessment. Using the basic amount as your estimate is a recognised safe harbour for avoiding the underestimation penalty, provided you do not owe more than the basic amount when the final ITR12 is assessed (SARS: Provisional Tax).

If more than 18 months have passed since the end of the preceding year of assessment, the basic amount is increased by 8% before use. Check your most recent SARS assessment for the prior year’s taxable income figure.

Payment and filing checks

Before submitting the IRP6:

Confirm the correct provisional tax period - the deadlines are typically end of August (first period), end of February (second period), and end of September (optional third).
Verify that taxpayer details, tax reference number, and banking details on your eFiling profile are current.
Review the estimated taxable income, estimated tax, and any credits from prior provisional payments.
Save a copy of the submitted IRP6, the eFiling submission receipt, proof of payment, and all working papers in a single folder labelled by tax year.

When to get professional help

A registered tax practitioner (SARS: Tax Practitioner Registration) can assist when:

Income fluctuates heavily and you are uncertain how to estimate the full-year figure.
Previous estimates were significantly wrong and SARS has applied interest or an underestimation penalty.
Foreign income, capital gains, or business structures (trust, company) are involved.
SARS has issued a verification letter, audit notice, or penalty assessment.

Frequently Asked Questions

What happens if my IRP6 provisional tax estimate is too low?

If your estimate falls below 90% of the actual tax liability for the year - or below the basic amount - SARS may charge interest on the underpayment from the payment due date. An underestimation penalty may also apply in certain circumstances. The optional third payment (end of September) is specifically designed to let you top up the estimate and reduce or eliminate the interest exposure.

What is the basic amount for IRP6 purposes?

The basic amount is your taxable income as assessed by SARS for the preceding year of assessment, increased by 8% if more than 18 months have passed since the end of that year. Using the basic amount as your estimate is a safe harbour - if you meet or exceed it, SARS generally does not charge an underestimation penalty, provided the final assessed liability is not significantly higher.

Can I submit an IRP6 if I don’t know my exact annual income yet?

Yes. The IRP6 requires a reasonable estimate, not a final confirmed figure. For the first return (around August), you are halfway through the tax year - use income received to date and project the rest. For the second return (around February), you have more actual data. The final ITR12 uses actual income to settle the position.

Do I still need to file an ITR12 after submitting IRP6 returns?

Yes. The IRP6 returns are advance payments based on estimates. The ITR12 annual return uses actual income and expenses to calculate the final tax liability. Overpayment through provisional tax results in a refund; underpayment results in a balance due when the assessment is issued.

Sources

SARS: Provisional Tax - IRP6 process, basic amount rules, deadlines, and penalty provisions
SARS: eFiling - where to access and submit IRP6 returns
Income Tax Act 58 of 1962, Fourth Schedule - legislative basis for provisional tax obligations and the underestimation penalty

This is a working checklist, not a SARS-approved form. Verify current deadlines, rates, and estimation rules with SARS or a qualified tax practitioner before submitting each IRP6.