PAYE: COVID-19 DEFERMENT OF TAXES

With cash flows being an issue for many businesses, it is important to draw clients' attention to a deferment allowed by SARS. This will affect clients with payroll taxes.

SARS are allowing for a deferral of PAYE monthly liability. 35% may be deferred (without interest or penalty) and payable from August 2020 to January 2021. This deferral includes April 2020, May 2020, June 2020 and July 2020.

See below (off the SARS website 28.04.2020):

It is advisable that clients who can afford to settle the full amount – do so. There will be admin following the deferment.

However, if clients businesses are horribly cash stressed, this may need to be considered?