Corona lockdown financial assistance
South Africa

Business owners was in a state of shock and fear about the national lockdown of 21 days pronounced by President Ramaphosa. 

Some of the most frequent asked questions we received are stated below, with our response to the information available.

1. Small Business Development – Debt relief fund

 If you are able to proof that your company are impacted directly linked to the COVID-19, you can apply for a claim on the following website:

www.smmesa.gov.za

Please make sure to complete the application form and specifically state the financial impact of your business.

At this stage, we are not sure about timeline and process from here, but will keep you informed.

If you are one of our Monthly Accounting Services clients, we will assist you FREE of charges with this application.

If not make sure to sign up today.

Find your Gift Pack for entrepreneurs to the value of R 57,500 from a huge variety of small business owners.

Follow the link below to activate your FREE Gift Pack:

(Including in this FREE GIFT PACK is a voucher worth of R 7,500 for 3 – Months FREE accounting services.

www.entrepreneur-sa.com/support-files/entrepreneur-sa.com-gift-pack.pdf


2. UIF for employees

Of the most frequently asked questions I receive currently is, how to handle employees in the following instances:

  • Immediate or temporary lay-off of employees
  • Reduced hours of work (short time)
  • Leave pay benefits 

The new National disaster benefit will be launched through the UIF by his Department to assist companies and employees during this time.

Maximum amount to be claimed from the national disaster fund is R 3,500.

The forms that need to be completed can be found in this link.


The required application forms and further instructions are stated below :

  •  UI 19 (to be completed by employer)
  •  UI 2.7 (to be completed by employer)
  •  UI2.1b
  •  UI2.8 (to be completed by the bank)
  •  Copy and paste the information on this letter (which confirms the lay-off or reduced work time due to the Coronavirus)
  •  Copy of ID document of employee


EBook-bundle-flyer

3.  Assistance from SARS

The following assistance are available from SARS.  Very important: The company need to be compliant with SARS.

  • Businesses with turnover less than R 50 million, will be allowed to withhold 20% PAYE for the next 4 months. (This will merely be a roll over and will still be payable at some stage).
  • And withhold provisional tax liabilities without penalties and interest.
  • Provide a tax subsidy of R 500 per month (for the next 4 months), for employees earning below R 6,500. (under the ETI act).    SARS confirmed that they will accelerate the pay-outs from twice a year to monthly pay-outs.  (unsure if this will be possible, but let’s hold thumbs)
  • Potential temporary reduction of employer and employee contributions to UIF and SDL. (no information yet)

4.  Payment holiday offered by banks

Standard Bank was first to announce a 3 months payment holiday for compliant companies related to their business loans and asset finance.

Subsequently Nedbank also offered a similar assistance.

I would suggest being in contact with your banker as soon as business, to discuss your options.

This should be the last resort, because of the cost that would still accumulate during the payment holiday.

 

5. Companies that may operate during this time:

Use this WhatsApp number during this time:

060 012 3456

Website : sacoronavirus.co.za