NAVIGATING THE LOCKDOWN
25 Mar 2020
Some practical considerations around the upcoming South African Lockdown, and beyond:
Employees traveling during lockdown - If your company is within one of the industries that will continue to operate during the lockdown, we highly recommend that you issue all your employees with a letter, on your letterhead with their ID number confirming employment to avoid them being stopped at road blocks.
Managing your cashflow, SARS - Carefully plan your payments of VAT, PAYE and other taxes. Government is allowing some concessions here, contact your partner at PKF to plan this.
Scale down employee work days - The current UIF legislation allows for your employees to claim UIF income if their working days are reduced. Contact our partners if you wish to explore this option.
Business as usual - Be prepared for when business starts returning to normal. Keep your financial records up to date. Communicate with our partners directly to pre-emptively solve problems. The virus will pass and normality will return – we would like to ensure that your records at SARS and elsewhere remain up to date, and that a tax clearance, for example, is available should you require same.
Negotiating with creditors - Do not stop paying your obligations unilaterally. Approach creditors in advance and renegotiate agreements if required. Avoid tarnishing your credit rating. Contact our partners to help prepare documents (ie cashflow forecasts) you may need to renegotiate agreements with your banks, financial institutions and other creditors. We can also attend electronic meetings with you and your creditors if required.
Business rescue - This option will help avoid your business closing down permanently, due this very unusual event. Contact our partners and discuss with them in a pre-emptive manner rather than waiting too long, if you suspect that cashflow management will not help your business survive.
IT Connectivity - Ensure all staff have sustainable solutions around this and that you have a system to support this. If you require support around any of these areas, we have an inhouse IT team and trusted business partners to help with any challenges you may have, again contact your local PKF partner should you need support with this.
Register for assistance with the Department of Small Business Development debt relief fund - Contact your PKF partner for assistance or follow this link:
Lastly ensure you spend time reflecting on your overall business strategy and potential opportunities created for your business through the current events in the South African and world economies.
All partners and staff are available on email as well as on their mobile phones. The landline will continue to operate.
Herman Nieuwoudt - 083 864 0654
Gerhard van Graan - 082 900 4441
Rob Newsome - 083 611 8500
Ntikile Sandlana - 082 785 1308
Office - 010 595 6910/011 9077 260