Reflection
During my quite time on Monday morning I reflected again on this season and how we as human beings are able to adapt to changing circumstances. For some of us being outside our comfort zone, comes naturally while for others not so easy.
The wonderful thing about change is that it brings growth. Growth cannot happen without change. Many households now include digital meetings, teaching, connecting with friends and family online, listening to pre-recorded messages, multi tasking by being a teacher, parent, businessperson, etc.
We as human beings are able to adapt.
The world will try to bring us to our knees and derail us, but at the end of the day it is our choice if we submit to this. I am a man of Faith and the wonderful news is, God has given us free will. Being able to make choices and control our attitudes in any circumstance or event.
Does this mean that we always need to be on a high, that life will be easy, definitely not! We can however choose how to act and learn through painful experiences.
Here is this week’s SMME’s update:
SAFT – Payroll funding
What is SAFT? The Oppenheimer generation representing the global interest of Nicky and Jonathan Oppenheimer announced the establishment of the SA Future Trust (SAFT) with an initial R1bn contribution by the Oppenheimer family.
The funds are to provide relief to the SMME sector in the form of 5-year, interest-free loans to qualifying businesses, for the purpose of maintaining minimum weekly payments to those employees who are at risk of losing their jobs or suffer loss of income. On approval, SAFT funds will be transferred directly to the employees’ bank accounts.
Summary of the loan:
– The loan has no minimum monthly payments requirements;
– Only needs to be settled in full at the end of the term;
– Employees carry no liability for the repayment of the loan;
– Qualifying SMME’s will get a R750 per qualifying employee per week over a 15 week period;
Qualifying criteria:
Any SMME with less than R25mill annual turnover in good standing:
– Includes sole proprietors, partnerships, operating trusts, CC’s and Pty Ltd;
– Must be trading for 24 months or more;
– Must be in good standing with the bank, statutory creditors and with the bureaus as at the end of February 2020;
– Income has been impacted by Covid-19 and therefore requires assistance to pay their permanent staff salaries.
Please contact us if you require assistance with the application.
VAT Relief
At this stage, SARS has granted no VAT payment relief due to the lockdown and Covid-19. Payment arrangements and other deferral methods for services unable to be rendered are, however, available to businesses with cash flow constraints caused by the pandemic. VAT vendors who are typically in a net refund situation can also fast track their refunds by applying for monthly VAT submissions to be made available to their business.
SDL suspensions
To help improve a business’ cash flow situation, the Government proposed a four-month payment holiday for all Skills Development Levy (SDL) contributions. Businesses will be eligible for the payment holiday between 1 May 2020 – 31 August 2020. This is a payment suspension and no repayment will, therefore, be required after the four-month period.
We will automatically complete the monthly PAYE return with zero SDL for all client’s that we assist on a monthly basis with their EMP201 submissions.
Final thought
As mentioned in previous newsletters, the coronavirus pandemic and the extended national lockdown has forced businesses to be innovative while adapting to the new working environments.
Take care of yourself, your family, your team, your clients and your community. Seek the opportunities that will undoubtedly arise and monitor your finances closely. You have our full support.
Together, we’ll do this!
Yours in business
Frank Fourie
