Xero Accounting Gold Champion Partner
We hope you enjoy reading the blog post.
If you want our team to do your accounting or tax for you click here.

Covid19 Lockdown – Your business first aid kit

We’ve all figured out what to do to keep ourselves busy with under lockdown. Luckily we’ve been using Netflix and our indoor trainers for a long time. But there are still so many questions around what the implications for my business are…And even though we can publish the “what” below, we’ll be figuring the “how” out together…


Opportunities for Businesses to Claim Tax Relief

During the address by Ministers in the Economic Cluster on 24 March, a number of pledges were made to help support businesses over the coming period.

One such measure permits tax compliant businesses with a turnover of less than R50 Million to delay 20% of their EMP-201 liability over the next 4 months. We are awaiting guidance on how this is to be administered, so we will update you as to whether any changes are needed when we know more.

Additionally, a portion of corporate income tax can be delayed for 6 months, with both the EMP-201 and corporate schemes having no penalties or interest accrue over their respective periods.

We’d like to remind and encourage all qualifying employers to avail themselves of the existing relief in the form of the Employment Tax Incentive (ETI). There is a draft proposal to expand this relief via a R500 per month subsidy. It has been proposed that this additional relief will be available for employers who were registered with SARS as at 1 March 2020 and will run between 1 April and 31 July 2020.

Additionally, there are prospects for the temporary reductions of Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL) contributions.

We are awaiting announcements on the measures mentioned in this paragraph and will update you as soon as we know more.


Opportunities for Businesses to be Supported by the COVID-19 Temporary Employer-Employee Relief Scheme (TERS)

COVID-19 TERS is a scheme which is aimed at providing support to businesses that are in distress due to the COVID-19 pandemic. If a company has their funding approved, the UIF will fund companies which are directly affected by COVID-19 in the form of a TERS allowance. The default length of funding is for 3 months.

We will be releasing a blog post dedicated solely to TERS very soon. Please continue to check our Resource Centre in the coming days for more information!


Support for Small, Medium and microsized Enterprises (SMMEs)

In her speech on the 24 March, Ms Khumbudzo, Minister for Small Business Development laid out plans to support SMMEs during the lockdown period. R2 billion was donated by the Rupert & Oppenheimer families, solely to support small businesses and their employees. This is intended to be done in multiple ways, through the Business Growth and Resilience Facility, as well as the SMME Debt Relief Finance Scheme.

In order for the SMME, self-employed individual or small company to qualify for the schemes, the following qualifying criteria must be met:

Have been registered with CIPC by at least 28 February 2020

  • Be 100% SA owned
  • Employ at least 70% South African citizens
  • Be SARS & UIF registered and compliant.

         (Non-compliant SMMEs can still apply, but they will only be considered when they are fully compliant.)

  • Be registered on the national SMME database (www.smmesa.gov.za).
  • Be able to show that it was negatively affected by the COVID-19 pandemic.

Businesses owned by women, the youth demographic and people with disabilities will be given preferential treatment for funding. If your company does not meet all of the above criteria, the Small Enterprise Development Agency (SEDA) can assist you in becoming compliant.

The application forms for the schemes detailed below are to be released on 2 April, so it is advisable to ensure that your company is registered on the SMME database and you have inspected your SARS & UIF compliance to see where you stand.


Debt Relief Finance Scheme

The aim of this scheme is to fund working capital for self-employed and informal workers and is the “safety net” the president referred to in his lockdown speech on 23 March. The intention is to run the scheme for 6 months, with working capital being loaned at a rate of prime less 5%. The size of the facility available to each SMME will be determined by comparison of their cashflow before and after COVID-19.

Additionally, Small Enterprise Finance Agency (SEFA) funded SMMEs will be able to take advantage of a payment holiday, removing loan obligations for 6 months. The deferment of the loans will not be capitalised, meaning that you will not pay any interest for the 6 month period. SEFA SMMEs will also be able to benefit from an audit to determine whether the client could benefit from a debt restructuring, with options such as converting to longer loans and additional funding to be explored.

The specific requirements for the Debt Relief Finance Scheme are found here.


Business Growth and Resilience Facility

In this scheme businesses geared to take advantage of the supply opportunities and shortages resulting from the COVID-19 pandemic will be able to partake in the scheme.

Working capital will be funded, but only for those that are directly linked to the direct cost of the business. The amount of funding will be based on the individual needs of the business, with loans being made at prime less 5%. In an attempt to dissuade any abuse of the scheme, if any entity is found to abuse this beneficial rate, they will be forced to repay the loan in full at prime plus 10%.

The page relating to the requirements can be found here.

SMMEs are encouraged to make use of the alternative support email and hotline number in preparation for the release of the application forms on 2 April. The contact details are info@dbsd.gov.za & 0860 633 7867.


Solidarity Fund

In the president’s speech on 23 March, there was mention that seed capital will be provided for the Solidarity Fund. The fund will be administered by a team made up of financial institutions, accounting firms and the Government.

The aim of the fund is to alleviate the suffering and distress the virus inflicts on the country through: preventive measures to flatten the curve; more widespread testing to help detect new cases; caring for those who have contracted the disease; and supporting families affected. If you are in the position to be able to donate to the solidarity fund, you can do so at www.solidarityfund.co.za.

We’re happy to help as always, so reach out if we can assist in any way.


Ready to take your financial success to new heights?
How would it feel to have peace of mind knowing that your finances are in the hands of experienced professionals who are passionate about helping you maximise your financial potential?
Ready to experience the difference? Contact us today for a complimentary consultation and discover how our tailored accounting solutions can empower your financial future.
What our clients say?
Thrive CFO
Based on 10 reviews
powered by Google
Martin Mulder
Martin Mulder
12:36 17 Aug 23
I have only the greatest appreciation for this company. I was going through a difficult time and they were understanding and accommodating. My tax was handled speedily and efficiently.
Kevin Rademeyer
Kevin Rademeyer
07:20 17 Aug 23
We have been using Melissa, Marche and the rest of the crew at ThriveCFO for over 10 years, in order to compile our annual audit for Law Society. They have been exceptional, efficient and pro-active every year. I would not take the business anywhere else.
Jan de Wit
Jan de Wit
13:13 13 Jun 23
Our firm has been making use of the services of Thrive CFO for more than 10 years. Thrive CFO has amazing staff that is not only extremely helpful, but also very capable. We are extremely happy with their services and will continue to support them. They make accounting easy. Thanks Melissa, Marche and the rest of the Team - You Rock!!
LM Keyser
LM Keyser
07:13 13 Jun 23
The ThriveCFO team has been our trusted accounting and tax partner since 2010. They are competent, honest, approachable, quick to respond, and they really do care. I highly recommend them.
Andre Claassen
Andre Claassen
10:24 08 Jun 23
Prompt, professional and personal service!!
Palabadi Ramaphoko
Palabadi Ramaphoko
19:38 15 May 23
I'm impressed with the work you do. You are extremely professional and polite. I hope we will grow big together!
Deidre Oosthuysen
Deidre Oosthuysen
12:20 04 May 23
I feel as though Thrive CFO is a natural part of our business. 100% professional. Very knowledgeable. Incredibly organised. And with a work ethic and proactive communication practices, I know I am in the very best hands possible.
Sean Fabian
Sean Fabian
07:45 04 May 23
As someone who has had the pleasure of working with Thrive CFO, I can confidently say that they are an exceptional company with an unwavering dedication to their clients. From beginning to end, their commitment to providing top-tier financial services is evident in every interaction.One of the things that sets Thrive CFO apart is their focus on education. They take the time to educate their clients on financial best practices and help them understand the reasoning behind their recommendations. This approach ensures that clients are empowered to make informed decisions about their finances.Thrive CFO also uses the latest technology to streamline their services and make the financial management process as efficient as possible. They utilize cloud-based software to provide real-time financial data and make it easy for clients to access their financial information at any time.Overall, Thrive CFO is an exceptional company that is dedicated to providing personalised financial solutions that help their clients succeed. If you're looking for a financial firm that truly cares about your success, I highly recommend Thrive CFO.
Michael Dawson
Michael Dawson
15:48 02 May 23
Great experience with the team! Always willing to assist with questions and able to help guide my small business to ensure that I am compliant.
Riaan Schlebusch ITMC
Riaan Schlebusch ITMC
12:15 21 Apr 23
Professional, smart and friendly people.You only deal with the best of the best, and they know how to answer your questions, and they ensure that they understand you, and make they make sure to take the time to know your business.
See All Reviews

Ready To Take Your Financial Success To New Heights?

Scroll to Top