With the country in turmoil over the Coronavirus outbreak, many business owners are worried about the next few weeks and months and making sure they can survive the storm. We want to support our clients and small businesses to let them know we are here to help and give guidance on where to reach out for help.
The chancellor pledged to do whatever it takes to support the economy through the disruption but where can you reach for help?
Government assistance
The government has offered to reimburse sick pay costs (SSP) for up to 14 days for employers with less than 250 employees, however, it has warned this could be months before the scheme is up and running properly
For this year, a £3,000 cash grant per business that is currently eligible for the small business rates relief, again no details are yet available on how this is to be claimed
Also for this year, business rates in England will be abolished for eligible businesses in the retail, leisure and hospitality sectors with a rateable value below £51,000
Small firms will be able to access ‘business interruption’ loans, up to £1.2million. Details are again currently being finalised but more information can be found here.
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
Will banks lend?
They will be probably to existing customers only. Natwest and Lloyds have outlined support packages and others may follow.
You may also wish to discuss deferring payments on any new or existing loans in place to ease cashflow concerns.
Other areas to consider
If you have business interruption insurance check your cover and know your position if you do have disruptions.
Check and review your debtor's ledger, keeping on top of customers who owe you money, perhaps over early payment incentives such as an early repayment discount.
Don't take your eye off day-to-day operations. Analysts say that they have seen a rise in cyber-attacks from hackers pretending to have information on Coronavirus.
We hope you find the above summary helpful and please let us know if you would like to discuss any points in further detail.
For further guidance specific to your own circumstances, we recommend meeting with an accountant. For more information and advice, get in touch with Catherine today. Give her a call on 01423 431889 or email catherine@bctaccountants.co.uk.