Defferal

Further COVID-19 PAYE Deferral

Kent Karro
2020-08-07
Defferal
In terms of a Media Statement issued by Treasury on 31 July 2020, the relief has been extended by a further month. The exact wording of the Statement reads as follows:

 

“Deferral of the payment of employees tax liability for tax compliant small to medium sized businesses
This tax relief permits tax compliant small to medium sized businesses to defer payment of 35 per cent of the employees' tax they have deducted from their employees in the four months from 1 April 2020 to 31 July 2020. It is proposed that the four month period be extended by one month to five months. As a result of this extension, repayments on the deferred tax will now only begin in October 2020 and run through until March 2021.”

 

The effect is that the PAYE payable in respect of August 2020 will also only need to be paid to the
extent of 35%. The total amount deferred as a result of these concessions will then need to be
paid starting October 2020 to March 2021.

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