What should I do if I cannot keep to an agreed tax debt instalment?

Establish why the instalment cannot be met

Start with the actual problem. The business may lack cash, a bank instruction may have failed, or a payment may have reached the wrong account. Those situations need different evidence and should not be described as the same default.

Read the approved arrangement and identify the instalment amount, due date, tax type, payment reference and conditions. Check the current status on SARS’s records. Do not rely on the original proposal if the approved terms differed.

The SARS debt guidance says failure to adhere to an arrangement can result in termination and resumed collection. Treat an emerging shortfall as an issue to address promptly rather than waiting for several missed payments.

If the deadline has not yet arrived, explain the expected problem and its basis. If it has passed, state the date and amount actually paid, if any. Accurate timing helps the adviser determine what action is still available.

Collect evidence suited to the cause

Keep the approved agreement with this evidence. A short explanation supported by records is more useful than a lengthy apology that does not identify the amount, date and cause.

Check whether a payment was completed

An eFiling payment instruction can still require authorisation at the bank. Review the payment status and the bank record before assuming SARS received the money. The SARS credit-push guidance explains that the banking approval step matters.

If an instruction failed, obtain the reason and establish how to complete payment through an approved route. Avoid repeatedly issuing instructions without checking whether an earlier one is still pending, as that can create duplicate payments.

If money left the bank but does not appear against the intended debt, compare the payment reference and account details. Use the SARS payment rules and official enquiry process to trace it.

Provide the evidence to the person handling the arrangement. A payment-tracing enquiry does not by itself prove that every condition remains satisfied, so ask for the arrangement’s status to be clarified while the allocation issue is resolved.

Ask for the appropriate review of the arrangement

Quote the existing agreement and tax references when contacting SARS. State what changed, when it became known, what has been paid and what is now proposed. Include any notice showing that the arrangement has been terminated or marked as not adhered to.

The SARS deferral guide explains that existing arrangements or debt orders can prevent a new online request and directs taxpayers to contact SARS about amendment or cancellation. Do not attempt to bypass that validation by creating duplicate requests.

Check the applicable route for the actual status. A request to revise future instalments is not the same as a confirmed replacement agreement. Retain the submission and follow up on any further information required.

Do not promise internally that SARS has accepted the new amount because it was discussed by telephone. Record the conversation and obtain the formal outcome applicable to the arrangement before treating the revised terms as settled.

Prepare a revised forecast that explains the change

Update the cash-flow forecast using current bank balances, realistic receipts and committed payments. Show how the original assumption failed and what evidence supports the new one. Replacing one optimistic collection date with another unsupported date does not address the underlying concern.

Include current taxes and other debt commitments. A revised plan that pays the old instalment by allowing new liabilities to go unpaid may not be sustainable. Present the complete picture and identify material uncertainty.

For a fictional supplier whose major customer delayed payment, show the revised collection expectation and the effect on wages, suppliers and the SARS instalment. If funding is proposed to cover the gap, include its actual approval and availability conditions.

Use the forecast preparation guide to test timing within the month as well as month-end totals. If there is no credible way to meet the proposed schedule, explain that honestly and seek advice on the appropriate options.

Explain previous defaults and corrective action

The SARS arrangement FAQ calls for reasonable and valid reasons for a previous default before another deferment request. Keep the history complete, including earlier arrangements and their outcomes.

Explain the cause with records and identify the practical correction. A bank-authorisation failure might require a clear payment owner and backup reviewer. A recurring cash deficit requires a financial response, not only a calendar reminder.

Distinguish a one-off event from an ongoing problem. If several customers consistently pay later than forecast, revise the collection assumptions across the plan. If operating costs have permanently increased, include the change throughout the remaining period.

Do not conceal an earlier termination because a new adviser is involved. The history may already be visible to SARS and is relevant to assessing whether the proposed arrangement can now be maintained.

Keep the interim position clear

Continue to review statements and correspondence while the request is considered. An amendment application does not automatically suspend collection or erase interest. The collection-action guide explains why the current documented position matters.

If a collection notice arrives, give the full document to the adviser and compare its debt and periods with the arrangement. Do not assume that submitting a cash-flow forecast answered the notice or extended its deadline.

Ask for advice on payments that can be made while the request is pending and ensure correct allocation. A partial payment may reduce a balance, but it should not be described as automatic acceptance of revised terms.

If the underlying amount is also disputed, keep the dispute and any suspension process separate. Financial difficulty does not replace the need to follow the correct remedy for an assessment or account error.

Make the internal payment decision clear

Identify who is authorised to make the revised proposal and who controls the bank payment. In a small business those may be different people. Give both the same current agreement and forecast so the approved amount is not lost between the adviser, owner and bookkeeper.

Record the decision and the source of funds supporting it. If a director will lend money to the company, retain the genuine funding terms and actual transfer evidence. Do not include money belonging to another taxpayer as though it were already available without an authorised transaction.

Agree an early escalation point when expected receipts fail to arrive. That internal control does not alter the SARS deadline, but it gives the business time to investigate and seek the appropriate response before the payment date passes.

Verify revised terms and prevent another failure

1. Read the formal outcome and confirm the debt covered.
2. Check the new amounts, dates and continuing conditions.
3. Arrange the payment method and required bank authorisations.
4. Assign a payment owner and a backup.
5. Keep sufficient notice of the next payment date.
6. Check successful payment and correct allocation.
7. Compare actual cash movements with the revised forecast.
8. Escalate new shortfalls before they become repeated failures.

Keep the superseded agreement in the history file and make the current version easy to identify. Staff should not alternate between old and revised dates.

For payment-arrangement support, provide the agreement, account, payment evidence, cause of the shortfall and revised forecast. The purpose is a supported request and a workable control process; SARS decides whether revised terms are accepted.