Urgent Actions to Take Today
Before we all get distracted by a long overdue announcement for the self-employed, we thought we’d re-issue the list of actions we sent last week.

If you haven’t followed our advice already please double-check that you’ve done everything possible to protect both your business and personal cash for the coming months.

Business Priorities for today….
Write a checklist for your business of what you can do, for example; Cancel all direct debits to HMRC today!! 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 suppliers to agree reduced payments for essential supplies and or Cancel Direct Debits for non essentials. 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.  

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?
ˑSpeak to your Mortgage provider and arrange a 6 month mortgage holiday.
ˑSpeak to you landlord and try to agree a reduction or 3 month break.
ˑRequest an interest holiday on all bank loans/Finance arrangements
ˑContact your credit card company for help, if none available only pay the minimum payment.
ˑGo through your bank statements  and grade your spending:
1) essential,
2) keep for now and
3) unnecessary and cancel as appropriate
ˑIts temping when your bored or feeling down to spend on line…now isn’t the time to splash out on luxury items.
ˑDon’t give up – we will get through this.
ˑWe’re waiting for further updates and will let you know as soon as we can so look out for our updates.
ˑWe’re here to help……Look out for the our next update.
Furlough Potential Legal Implications…

To help you consider the implications we have attached some general legal guidance which may help you understand the potential legal pitfalls of furloughing staff. However it does not constitute professional legal advice and we take no responsibility for the information therein.  Please click here  to read it now.

As we stated  yesterday we’re not in the position to advise on the legal implications of furloughs and it is important that you review your contracts to ensure that you are able to place employees on furlough and seek employment law advice if necessary.

The information around furloughs is confusing and gradually as more details emerge we’ll need to reassess.  If you have already furloughed staff due to enforced closure then please ensure that you issue a letter for them to sign that confirms they accept the temporary changes to their contracts. If you need to furlough now as there isn’t enough work please ensure that you consult with your employees and gain their agreement and get them to confirm this in writing. Then issue a letter confirming the furlough arrangement. There is an element of risk to furloughing now as we are still not clear of the criteria that HMRC will use to assess the need to furlough, however you may not be in a position to wait and need to weigh up the two options. Ultimately it is your own judgement call

A number of sources state that the employee will get 80% of their wages, however our interpretation of the guidance is that the furlough subsidy with be based upon 80% of all employment costs for the employee including NI and Employers AE pension costs, up to £2,500 so employees may not receive 80% of their monthly take home pay

We will up date you as more information emerges, but under the current climate of confusion do not guarantee the accuracy of the information and strongly advise you to do your own research and or seek professional employment law advice. We can refer you if required.
We have attached two further templates; one to explain Furlough and to consult with an employee and the second to confirm furlough. Where ever possible it may be wise to use both and  particularly if your contracts don’t include a short-time working clause
Click Here to access the templates or ring your Client manager. However, please note that if you choose to use them you do so at your own risk.

Stay Safe and Stay Healthy

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