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P3 and Top Ups

The P3 or top up is something that Sky Tax will calculate and produce a form for payment. There is in fact no filing it's just a question of paying the top up which is a voluntary payment. Please note that if in the 2021 provisional tax year that the taxpayer claimed Covid relief then there will be a liability for catching up on what was claimed for Covid relief. Also please note that we download provisional tax receipts from SARS which automatically update the review ledger as well as the receipt database.
 
The P3 or Top Up calculation routine must be done for the previous year whenever you run the P1 process where the need arises.  When doing the calculation for P1 2015 you will be doing the P3 for 2014 simultaneously.  A P3 or top up payment is a voluntary payment that should be paid in order to avoid interest been levied by SARS. Please note there is no filing of any form, all that has to be done is for a payment to be made with the correct payment reference number. P3 ’s or top ups should be done in consultation with your clients.
 
A P3 payment is due 6 months after the year end and in the case of a February year end by the 30th September, i.e. 7 months after the year end each client should be evaluated as to whether a P3 payment is required or whether the taxpayer wants to make a payment.  You should do this by producing a provisional tax review report evaluating each client and once you have the necessary information it will be necessary to do each calculation interactively.  A global calculation is not available for P3 as the client or practitioner should make the decision as whether to pay. 
 
The problem is that where there has been substantial growth at the taxpayer and the practitioner is not aware of this there could be some fallout or risk for the Tax Practitioner if there is any interest to pay.  The system should be set up which will protect the Tax Practitioner against this risk.
 
Click on the top up tab and then click on the new icon   which is the first icon. This will create a new top up record. You can create as many top up payments for the taxpayer as you want.
 
On the Tax Ledger select the top up tab;
 
 
Edit the actual income amount on the right hand side and the system will recalculate with the required payment. The history of the payments will show in the left hand panel.
 
Please note that the tax ledger will allow you to see all aspects of income tax, P1 P2 P3 and Top Ups.
 
July 2021