SARS Enforcement Is Increasing - What South Africans Living in the UK Need to Know

The recent South African Budget and related commentary from SARS point to a stronger compliance and enforcement environment, with increased use of data analytics, verification, debt collection and risk-based reviews.

Much of the current discussion around SARS enforcement has focused on “Project AmaBillions”, commonly used to describe SARS’s intensified drive to recover large amounts of outstanding tax through stronger enforcement and improved use of data.

For South Africans living abroad, particularly those in the UK, this matters more than ever.

Many taxpayers believe that because they live outside South Africa they are no longer on SARS’ radar. The reality is quite different. SARS now has more data, better systems, and stronger international cooperation than ever before.

The Budget confirms that compliance enforcement will be a major focus going forward.

Key takeaways

• SARS is increasing compliance enforcement and debt collection activity.

• The “AmaBillions” initiative reflects a stronger focus on recovering outstanding tax.

• South Africans living in the UK may still have reporting obligations to SARS depending on their tax residency and income sources.

• Many SARS verifications are triggered by data matching rather than deliberate non-compliance.

Below we explain what this means in simple terms and how SAUK Tax can help.

What is the “Amabillions” initiative?

As noted above, much of the current focus has been on “Project AmaBillions”, which reflects SARS’s broader push to strengthen enforcement and recover outstanding tax.

In practical terms, this means more taxpayers may receive queries, verification requests, or audit notices from SARS. Importantly, many of these reviews are triggered through automated data matching rather than any deliberate wrongdoing by the taxpayer.

Why this matters for South Africans living in the UK and abroad

If you have any ongoing connection to South Africa, SARS may still expect tax reporting from you.

This commonly includes people who:

• Previously lived in South Africa

• Own South African property or investments

• Receive income from South Africa

• Have not formally ceased tax residency

• Have not filed tax returns for several years

• Claimed foreign employment exemptions in the past

Many people assume that leaving South Africa automatically ends their tax obligations.

In practice, that is rarely the case.

Whether a person remains subject to South African tax depends primarily on their tax residency status, rather than simply where they live.

As a result, we are increasingly seeing cases where:

• SARS requests historic tax returns

• SARS challenges tax residency status

• SARS asks for supporting documentation

• SARS issues administrative penalties

• SARS opens formal audits

With the Amabillions campaign accelerating enforcement, these types of reviews are likely to become far more common.

Common issues we are seeing

At SAUK Tax we are already assisting many individuals who have been contacted by SARS.

Some of the most common situations include:

• Unfiled tax returns

Many South Africans abroad stopped filing once they left the country. SARS is now identifying these gaps.

• Incorrect tax residency assumptions

Leaving South Africa does not automatically terminate tax residency. Whether someone has ceased to be tax resident depends on their circumstances and should be properly declared to SARS with supporting documentation.

• Foreign income reporting

SARS may request details of employment income earned overseas.

• Cessation of South African tax residency

Where this process was never completed, SARS may still consider someone resident.

• Data mismatches

Information from banks, financial institutions, and international tax reporting agreements can trigger queries.

In many cases these situations can be resolved once the underlying tax position is properly reviewed.

The good news: most issues can be resolved

While increased enforcement can sound worrying, in many cases the solution is straightforward once the situation is properly reviewed.

For example, we often help clients:

• Regularise outstanding tax returns

• Confirm and document non-residency status

• Respond to SARS verification requests

• Manage audits or compliance reviews

• Correct historic filings

• Ensure future compliance

Our role is to assist clients in managing the process and responding to SARS in a structured and timely manner.

Why early action matters

One of the biggest mistakes we see is waiting until SARS enforcement escalates.

Early intervention often means:

• Faster resolution

• Lower penalties

• Less stress

• Clear documentation of your tax position

If SARS contacts you and you are unsure how to respond, it is always better to seek advice early.

How SAUK Tax can help

SAUK Tax specialises in cross-border tax matters between the UK and South Africa.

Our team works with South Africans living abroad to help them understand and manage their obligations in both jurisdictions.

We regularly assist with:

• SARS compliance reviews

• Audit and verification responses

• Tax residency analysis

• Catch-up filings for historic returns

• Cross-border tax planning

• UK–South Africa tax coordination

  
  

Our goal is simple: to give clients clarity and peace of mind when dealing with complex cross-border tax issues.

If you receive communication from SARS such as:

• A verification notice

• An audit notification

• A request for supporting documentation

• A notice about outstanding tax returns

  
  

Please do not ignore it.

Deadlines are often short, and early professional support can make the process significantly easier.

If you would like to review your South African tax position - or if you have already been contacted by SARS - our team would be happy to assist.

You are welcome to contact us for an initial discussion.

A final thought

The South African Budget makes one thing very clear:

SARS is increasing enforcement and expects greater compliance.

For South Africans living abroad, this does not need to be a concern - provided your affairs are properly structured and up to date.

SARS compliance for South Africans living abroad

South Africans living outside the country often assume that their tax obligations end when they leave. In reality, whether a person remains subject to South African tax depends on their tax residency status and the nature of any income connected to South Africa. As SARS continues to strengthen its compliance systems and use international data sharing, it is increasingly important for expatriates to ensure their tax position is clearly established and properly documented.

Frequently asked question

Do South Africans living in the UK still have to pay tax in South Africa?

Whether a South African living in the UK must pay tax in South Africa depends primarily on their tax residency status and the source of their income.

Individuals who remain South African tax residents are generally taxed on their worldwide income, although relief may apply under the UK–South Africa double taxation agreement.

Individuals who have ceased to be South African tax resident are typically taxed in South Africa only on South African-source income, such as rental income from property located in South Africa.

Because tax residency can be complex and depends on a person’s specific circumstances, it is important to ensure that residency status and filing obligations are properly established.

This article is provided for general information purposes only and does not constitute tax advice. Professional advice should be obtained based on your specific circumstances.