Advise on Business Relief, Debt Payments and Funding
Covid-19: Advice on Relief Payments and Funding
Trade disruptions caused by the Covid-19 lockdown have affected businesses and individuals across the world and, in line with global trends, our government has offered relief to South African small businesses and individuals who have been and will be financially impacted. This has come in the form of debt relief and aid to SMEs. In order to qualify for these relief measures, certain criteria have to be fulfilled.
Grid Forensic Accounting’s financial and tax specialists can help advise businesses and individuals on the steps they need to take to apply, assist with the compilation of annual financial statements, explain what is meant by exceptional tax measures, and advise on best practices to follow when applying for a debt holiday with regards to property ownership and/or lease agreements.
Small business relief
If you’re planning to apply for relief funding, there are a number of requirements that need to be fulfilled before you can register your business on smmesa.gov.za. These include the following:
- Your company must have been registered with the CIPC (Companies and Intellectual Property Commission) before 28 February 2020 OR your company is operating as a sole proprietorship
- Your company must be 100% owned by South African citizens.
- 70% of the company’s employees must be South African citizens.
- Your company must be fully compliant and registered with SARS and UIF.
Please note: priority will be given to businesses owned by women, the youth and disabled people.
If you meet these criteria, the next step is to register on the national SMME database: smmesa.gov.za. Here you will need to complete the online application and submit the following information:
- Proof that the business is negatively affected by COVID-19.
- The following documents need to be uploaded:
- Company statutory documents (unless you’re operating as a sole proprietor, in which case these documents are not necessary)
- FICA documents (e.g. municipal account and letter of authority)
- Certified IDs of directors
- Three months’ worth of bank statements
- Latest annual financial statements
- Company statutory documents
- Business profile
- Six months’ worth of cash-flow projections (where applicable)
- Proof of ownership of property or copy of lease agreement
- Proof of details of employees registered with UIF, including their bank details
- Provide a detailed breakdown of funds required, including salaries, rent, expenses, and so on.
One critical aspect of your application for support from government is an up-to-date annual financial statement. Grid Forensic Accounting can compile your annual financial statement, and do so on an emergency basis, if required, as we understand timing is key. Our tax and financial experts work closely with our clients to achieve compliancy timeously.
While it is up to each business to complete the smmesa.gov.za application, following the compilation of the annual financial statement, Grid Forensic Accounting will be more than happy to assist that business, where possible, should queries arise during the application process.
See our full Annual Financial Statement service here
Tax management consulting for SMEs and individuals
Did you know that SARS will issue tax directives to assist SMEs affected by the Covid-19 lockdown? While calculations need to be performed by the business’s financial department, Grid Forensic Accounting’s tax consultants can facilitate the process by assisting in a consulting capacity to answer any questions you may have.
We’re also available during and after lockdown to assist businesses and individuals with our tax management consulting services, including the compilation of annual and provisional tax returns.
See our full Tax Management Consulting service here.
Debt holiday calculations
If your tenant requests a rental holiday to help ease their financial burden during the Covid-19 crisis, you can assist them by incorporating the rental holiday period and an interest payment into the lease agreement. Interest can be charged at a specific rate agreed upon between tenant and landlord. This interest can be factored into the new rental instalment at the end of the payment holiday. Grid Forensic Accounting can assist with these calculations, so please don’t hesitate to contact us.