A Beacon of Hope
Last night in an increasing atmosphere of gloom and trepidation the Chancellor lit a beacon of hope for beleaguered business owners and employees alike.
Faced with the impossible dilemma of keeping a business going with, a huge drop in income and an empty order book, while sustaining loyal employers through the crisis, many owners are becoming increasingly desperate.With the Prime Ministers announcement of mandatory closures of Pubs, Restaurants and Cafes only adding to the dismay.
In a bold move to prevent the economy grinding to an absolute standstill the Chancellor stepped in with an unprecedented level of support for employers and employees. Although there are other measures needed to help other groups including the self- employed, these measure will go a long way toward keeping money moving in the economy to the ultimate benefit of all.We spent yesterday trying to get advice for you from HMRC on impending VAT and PAYE payments however the latest announcement swept this advice aside.
Action -Please cancel you VAT and PAYE direct debits immediately.
These are the key measures announced this week….
- a Coronavirus Job Retention Scheme – employers can furlough employees instead of laying them off with the government to pay 80% of the salary up to £2500 pm. Will be implemented asap and back dated to 1st March
- Deferring the next VAT quarters. You still need to prepare and submit them to know what liabilities you are deferring –Deferred Mar/Apr/May to recommence in June 2020 – those VAT payments deferred to Mar/Apr/May 2021.
- Deferring the July Personal Income Tax payments- to be paid January 2021
- A Corona virus- Statutory Sick Pay relief package for SMEs –Employers can claim back SSP starting on day 1
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge Corona-virus disruption to their cash flows through loans
- the HMRC Time To Pay Scheme
For further information please click
Action- Don’t wait for these measures to be implemented- Guard your cash-flow now- Speak to your client manager and work out your immediate cash-flow priorities
Focus on what you can do….
In times of uncertainty and challenge it’s very easy to feel that everything is beyond your control. This is the very time you need to focus upon what you can do, the things you can control;
First and fore most this must be the health and well-being of your loved ones, friends, neighbours and your wider community,
Next write a checklist for your business of what you can do, for example;
- Speak to you Client Manager and we’ll help you to reduce all possible unnecessary over-heads
- We’ll look at your staffing costs and provide realistic predictions of future income. So you can make the hard decisions to trade on, temporarily shut down, reduce hours or furlough or lay-off staff quickly- running your business into the ground won’t help you or your employees.
- Speak to your bank manager and ask for a capital repayment holiday on any loans
- Speak to your landlord if you rent and negotiate a payment reduction or holiday
- Get your accounts records to us quickly so we can get up to date accounts for loan or grant applications
- Don’t watch helplessly as everything you’ve worked for is lost, keep speaking to us and we’ll do our best to help you take the appropriate action at the right time what ever that may be to..
Personal Spending Priorities….
Don’t panic too much, about reduced income- with no nights out or holidays to pay for you won’t be spending as much, but what else can you do?
- Speak to your Mortgage provider and arrange a 6 month mortgage holiday
- Speak to you landlord and try to agree a reduction or 3 month break
- Go through your bank statements and grade your spending 1) essential, 2) keep for now and 3) unnecessary and cancel as appropriate
- Its tempting when your bored or feeling down to spend on line…now isn’t the time to splash out on luxury items
- Don’t give up- we will get through this
- We’re waiting for further updates and will let you know as soon as we can so look out for our updates