The 23 October Filing Season Deadline and the First 15% PSA Payment: What Accountants Must Do Before Mid-October

Two payment-and-filing cliffs sit in the same October week. In South Africa, Filing Season 2026 closes for non-provisional individual taxpayers on 23 October 2026, and the penalty for an outstanding return is not a once-off — it recurs monthly for up to 35 months. In the UK, employers with a PAYE Settlement Agreement must pay the 2025/26 tax and Class 1B National Insurance by 22 October 2026, and for the first time the bill is calculated at the 15% Class 1B rate rather than 13.8%. Both deadlines are close enough that the work has to start now, and far enough away that starting now makes them easy.

When does Filing Season 2026 close?

SARS set the Filing Season 2026 dates as follows: auto-assessment notices went out from 1 to 12 July 2026, non-provisional individuals who were not auto-assessed have from 13 July to 23 October 2026 to file, and provisional taxpayers have until 22 January 2027. Trusts file from 19 September 2026 to 22 January 2027 — which means the trust window opens the same week this update goes out. One change worth flagging to clients: this year, eligible provisional taxpayers received auto-assessments for the first time. A client who agrees with an auto-assessment need do nothing; a client who disagrees must amend and file by the deadline that applies to them.

What does missing 23 October actually cost?

An administrative non-compliance penalty — a fixed amount of between R250 and R16,000 a month, set by the taxpayer's taxable income. The figure that changes client behaviour is not the amount but the recurrence: the penalty is charged again for every month the return remains outstanding, up to a maximum of 35 months. SARS imposes it on natural persons with one or more income tax returns outstanding for years of assessment from 2007 onwards. A "forgotten" return is therefore not a R250 problem; left alone, it compounds into a five-figure one on even the lowest band.

What should firms do with the five weeks that remain?

Pull the list of non-provisional clients who have not yet filed and book them in this week — five weeks is comfortable for a prepared firm and impossible for a queue formed on 20 October. Check every auto-assessed client, including the provisional taxpayers newly swept in, and confirm whether the assessment stands or needs an amended return. And diarise 19 September for every trust on the books: the trust season runs to 22 January 2027, but trust returns lean on beneficial-ownership detail and supporting documents that take longer to assemble than clients expect.

What is a PAYE Settlement Agreement?

A PAYE Settlement Agreement lets a UK employer make one annual payment covering all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits given to employees — staff entertaining and small gifts being the classic contents. Items in a PSA do not go through payroll; instead of Class 1A National Insurance at year-end, the employer pays Class 1B as part of the settlement. Agreements for 2025/26 had to be in place by 5 July 2026, so October is not about applying — it is purely about calculating and paying.

When must the 2025/26 PSA be paid — and what if it is late?

The tax and Class 1B National Insurance must reach HMRC by 22 October 2026, or by 19 October 2026 if paying by post. Two warnings sit in HMRC's own guidance. First, late payment can bring penalties and interest. Second, the amount owed depends on the value of expenses and benefits reported to HMRC — and if an employer fails to report, HMRC can calculate the amount itself, which can lead to higher charges and misallocated payments. The calculation, in other words, is not optional paperwork attached to the payment; it is what protects the client from HMRC's version of the number.

Why is this year's PSA bill bigger than last year's?

Because the rate changed. The Class 1B National Insurance rate for 2025/26 is 15%, up from 13.8% in 2024/25 — following the employer National Insurance increase that took effect from April 2025. The PSA payment due this October is the first settled at the higher rate, which means any client budgeting from last year's bill is budgeting short even if their benefits spend is identical. The useful client conversation happens in September: finish the calculation, share the number, and let the payment on 22 October be a formality rather than a surprise.

What should your firm do before mid-October?

In South Africa: identify every unfiled non-provisional return this week and schedule the filings well clear of 23 October, review each auto-assessment — especially for provisional clients receiving one for the first time — and open the trust files when the window starts on 19 September. In the UK: complete every outstanding PSA calculation, submit the values to HMRC rather than leaving HMRC to invent them, warn clients that the 15% Class 1B rate makes this year's payment larger, and diarise 22 October — or 19 October for anyone still paying by post. Different taxes, same rule as every week this newsletter is written: the firms that move first spend deadline week advising, and everyone else spends it apologising.