As the festive season approaches, it’s common for spending to rise travel, family gatherings, gifts, and year-end events all add up.

With a few mindful habits and some strategic tax planning, you can enjoy the holidays while keeping your financial health on track.

Here’s your practical guide to spending wisely and preparing for a more tax-efficient year-end.

Set a Festive Budget That Actually Works

South Africans often underestimate holiday costs, especially with seasonal price increases.

Tips to stay in control:

• Create a budget for gifts, food, travel, and entertainment.
• Use loyalty programmes (eBucks, Vitality, Smart Shopper, UCount) to reduce costs.
• Shop earlier to avoid “last-minute inflation” from surge pricing and limited stock.

Consider Cost-Effective, Meaningful Gifting

Thoughtful doesn’t mean expensive.

Ideas:

• Give personalised or handmade items.
• Suggest family gift draws instead of buying for everyone.
• Compare prices using local apps and online stores to avoid overspending.

Make Use of Tax-Efficient Investment Products Before 28 February

South Africa’s tax year ends on 28 February meaning the festive season is a perfect time to review contributions.

Consider topping up:

• Retirement Annuities (RAs): Contributions may be tax-deductible topping up before tax year-end can lower your taxable income.
• Tax-Free Savings Accounts (TFSAs): While contributions aren’t deductible, growth and withdrawals are tax-free.
• Endowments: Useful if you’re in a higher tax bracket and want tax-efficient long-term investing.

If you’d like, I can include this year’s exact contribution limits.

Be Strategic With Charitable Giving

Giving is a big part of the holiday spirit and SARS may offer tax benefits.

Consider:

• Donations to S18A-approved organisations may qualify for tax deductions.
• Always request an S18A certificate for your records.
• Year-end is a good time to “bunch” charitable donations to maximise the deduction.

Review Your Medical Scheme & Medical Expenses

Medical expenses often spike during December due to year-end travel and festive activities.

Tax considerations:

• Keep receipts for qualifying out-of-pocket medical expenses.
• Make sure you understand your medical scheme’s year-end benefits, gap cover rules, and thresholds.
• If you’re approaching the end of the tax year, additional qualifying expenses may help you claim a portion back.

Check Your Tax Withholding Before February

If you received a large refund last year or an unexpected bill adjusting your PAYE or provisional tax now can help you avoid surprises.

A quick review can ensure your tax profile is accurate before SARS’s February deadline.

Plan for Holiday Travel Wisely

Travel is one of the biggest December costs.

Ways to save:

• Book in advance or travel slightly off-peak when possible.
• Compare domestic routes and carriers prices can vary widely.
• Look for fuel rewards if driving long distances.

Get a Head Start on Your 2025 Financial Plan

The new year is a perfect opportunity to refresh your financial strategy.

Consider reviewing:

• Your emergency fund
• Your investment and savings goals
• Your tax position ahead of February year-end
• Short-term debt and credit use over the holidays

Small adjustments now can create a more secure financial year ahead.

We’re Here to Help

If you’d like personalised year-end tax planning or help reviewing your investment strategy before the 28 February deadline, we’re here to guide you.

Wishing you a joyful, financially confident holiday season!
– Your Advisory Team @Worldwide Tax Solutions