BUSINESS NEWS - Future months remain uncertain for freelancers, self-employed workers, entrepreneurs, and small business owners whose sources of income have been indefinitely paused.

There are certain measures that can be taken personally and professionally to protect your finances during this period when you have no income or your incomes are very low.

Lucille Sikosana, a business development manager at Old Mutual Investment Group, as a recommendation, says “Continue working remotely and servicing clients using technology to ensure you cover next month's invoicing. Ensure that you contact your debtors/suppliers and negotiate flexible payment terms. You can also approach short-term lenders to cover the shortfall in these payment gaps, however, the success of this will depend on the risk analysis of the business."

According to Christelle Louw, advisory partner at Citadel, in these critical times when it is not known what the future of the South African economy will be like, the first move to do to deal with financial uncertainty is to analyze your finances with a complete and detailed evaluation of sustainability and lifestyle. The purpose of this is to know if you are on the right track to achieve the financial goals you have set. The first step is to re-examine your family budget, which may include some unnecessary spending cuts.

If despite all efforts to cut expenses as much as it is possible to you, you cannot make ends meet, you should consider turning to the government for financial help. 

Due to the economic crisis caused by COVID-19, the government is taking a series of measures like local bank loans for self-employed.

The government has already launched a small business tax relief fund, assistance to people who owe their banks, and unemployment insurance payments.

If you are self-employed or a freelancer, the government can help you. As an emergency measure, the government offers the possibility of a late-paying provisional tax. Now, provisional taxpayers (companies and individuals who earn income other than a salary) will be able to pay only once this year. The first payment will be 15% after six months and the other payment will be 50% at the end of the fiscal year. Alternatively to how is it like at the present where provisional taxpayers have to pay 50% of the expected tax bill six months after the fiscal year and settle the full amount at the end of the fiscal year.

With this possibility, by the end of September 2021, people who are eligible will have to pay the balance.

Since it has not been decided who are the ones that are going to be eligible, the Treasury says that will probably be those who have a turnover of less than R5 million and do not earn more than 10% of their interest, dividend, foreign dividend, rentals from letting fixed property and pay received from an employer.

Another service you can benefit from is Credit Insurance help. As a result of new legislation adopted in South Africa in 2017, if you have taken out credit insurance for your loans, credit card, or short-term loans, you may be covered for up to 12 months due to being unemployed or not having any income during the crisis caused by the coronavirus.

The help provided by some banks could benefit you.

Big banks in South Africa are taking certain measures to help their clients. What they offer is up to three months' payment holiday on home loans, vehicle financing, personal loans, and credit cards.

The insurers are also taking some measures thinking in their clients, they offer different relief options. Such as Santam that offers a refund of 20% of premiums.

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