Support for Businesses
We are all living in very challenging times that are affecting every business and individuals.
It is unclear for how many weeks or months this will continue to affect our day to day activities but as business owners we need to take immediate action and plan for tomorrow and the next 6 months today.
The key element to the survival of any business is cashflow and this is going to face some challenges over the coming months.
As I am sure you are aware the government has issued a number of measures to assist businesses as a result of the Covid 19 pandemic.
The measures so far announced include the following:
• Refunds of SSP claims
• Business rate relief for some businesses
• Coronavirus Business Interruption Loan Scheme
We would advise every business to act now and prepare at least a 6-month cashflow forecast. You will then need to consider how the environment could affect your income and cash receipts and what the impact might be on your bank balance. You will also need to consider how you may be able to reduce your cash outgoings. This would include staff costs, rental payments and also PAYE, VAT and Corporation tax.
The Coronavirus Business Interruption Loan Scheme will be launched next week. It will enable UK based businesses with a turnover of no more than £45 million to apply for a loan of up to £5 million. This funding is government backed and the first 6 months are interest free.
If you want to take advantage of the financial support available, then the sooner you act then the sooner you will be in good place to plan your future and that of your business.
We are here to provide you with all the support and advice you may need at this time. We can prepare or review cashflow forecasts and ensure that you have the financial information available to make an application for a loan to get you through the coming months so that you are able to stay open for business or reopen as soon as the current environment improves.
As a priority, consider asking for time to pay tax bills. Call the HMRC Time to Pay coronavirus helpline on 0800 015 9559 or visit the website. Instant cash flow benefit can be obtained by deferring part or all of your PAYE, National Insurance, VAT or Corporation Tax payments, so these amounts don’t leave your bank account when you most need it.
Finally, we have also attached further guidance (Click to view) and useful information to assist you.
So please do not hesitate to give me, Ian, Sarah or any of the team here a call to discuss how we may work together to get through this turbulent period.