5 Tax Deductions South African Freelancers Always Miss
Five legitimate SARS deductions that South African freelancers and independent contractors consistently overlook - and the records you need to claim every rand you are owed.
5 Tax Deductions South African Freelancers Always Miss
Most South African freelancers leave money with SARS every year. Not because the deductions are unavailable - because the records were never kept.
SARS allows self-employed professionals to deduct a wide range of legitimate business costs against their income. Here are five deductions that come up repeatedly in conversations with South African contractors, consultants, and self-employed professionals.
1. Business mileage
If you drive to client sites, attend meetings, or travel for any income-producing purpose, that mileage is a deductible cost.
For the 2026/2027 tax year (1 March 2026 to 28 February 2027), the SARS prescribed rate is R4.95 per kilometre.
For self-employed persons, the deduction for business travel is claimed under section 11(a) of the Income Tax Act as expenditure incurred in the production of income. Many tax practitioners use the prescribed rate as a practical reference point, but confirm the correct method with your tax practitioner as it depends on how your income and vehicle costs are structured.
A compliant logbook must record each business trip: the date, kilometres driven, starting point, destination, and business purpose. It must also include your vehicle''s odometer reading on 1 March and 28 February.
If you are driving 800 km per month for client visits, that is 9,600 km over the tax year. At R4.95/km, the potential deduction is R47,520 - but only if the logbook exists.
2. Home office expenses
If you work from home in a dedicated space used regularly and exclusively for your trade - specifically equipped for that purpose - SARS allows you to deduct a proportional share of your qualifying home costs.
The exclusive use test applies to self-employed persons and freelancers. The "more than 50% of duties" test applies to salaried employees only.
Deductible costs for qualifying home office use:
- Rent (if you are a tenant)
- Municipal rates and taxes
- Electricity
- Water
- Cleaning costs
These are apportioned by floor area: (area of home office / total home area) x total qualifying costs.
Important: Bond interest (mortgage interest) is not a deductible home office expense. This was clarified in SARS Interpretation Note 28, Issue 3 (4 March 2022).
3. Professional development and subscriptions
Every course, industry membership, and software subscription used in the direct production of your income qualifies as a deductible expense. The test is whether the expense was incurred in the production of income.
4. Cell phone and data costs
The business-use proportion of your monthly phone spend is deductible. Keep your itemised bills and apply a realistic business-use percentage.
5. Equipment depreciation
Laptops, cameras, and office equipment qualify for wear-and-tear under SARS Binding General Ruling 7. A R25,000 laptop can be claimed at approximately R8,333 per year over three years.
The common thread
Every deduction above requires documentation. The most consistent reason South African freelancers underclaim is not that the deductions were unavailable - it is that the records were not kept at the time.
Expenstry is built to solve exactly this problem. Scan receipts as you go, log mileage as you drive, and export a SARS-compliant report at tax time. Start your 30-day free trial at expenstry.com - no credit card required.