12 Steps to Ensure Your Business Beats Coronavirus - Financial Options

What Action Should You Take NOW?

Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees' salary for those employees that would otherwise have been laid off during the crisis. 

The scheme, open to any employer in the country, will cover the cost of wages backdated to 1 March 2020 and will be open before the end of April. It will continue for at least 3 months, and can include some workers who were in employment on 28 February. 

How to access the scheme:

• designate affected employees as 'furloughed workers', and notify employees of this change (for those unaware, furloughed means a period of time that a worker is allowed to be absent temporarily from work). Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation; and 
• submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal. HMRC will set out further details on the information required. 
• HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of ￡2,500 per month

For employees to qualify for this scheme they should not undertake work for you while they are furloughed. 

While HMRC is working urgently to set up a system for reimbursement, we understand existing systems are not set up to facilitate payments to employers. Businesses that need short-term cash flow support, may benefit from the VAT deferral announced below and may also be eligible to apply for a Coronavirus Business Interruption Loan. 

ACTION:

Review your staff resourcing in light of the support offered. Has anyone been made redundant that could now be furloughed? Who of your existing workforce should you look to furlough? Prepare ahead of the mechanism for receiving the cash being introduced. 

VAT Payments

The next quarter of VAT payments will be deferred. The deferral will apply from 20 March 2020 until 30 June 2020, meaning that businesses will not neet to make VAT payments until the end of June 2020. Businesses will then have until the end of the 2020-21 tax year to settle any liabilities that have accumulated during the deferral period. 

The deferral applies automatically and businesses do not need to apply for it. VAT refunds and reclaims will be paid by the government as normal.

ACTION:

Don't pay your next VAT payment. 

HMRC Time to Pay

HMRC's Time to Pay scheme can enable firms and individuals in temporary financial distress as a result of Covid-19 to delay payment of outstanding tax liabilities. HMRC's dedicated Covid-19 helpline provides practical help and advice on 0800 0159 559. 

ACTION:

No action required for your next VAT payment, as above. Call HMRC to agree time to pay for the latest PAYE/NI due (Feb 2020), if not paid already. For those with a company financial year end of 30 June, corporation tax payments will be due on 1 April 2020 - do you need to arrange a time to pay? If so do it now. 

Business Rates holidays and cash grants

• No rates payable for the 2020-2021 tax year for any business in the retail, hospitality or leisure sectors. 
• In those sectors, if your rateable value is between ￡15K and ￡51K, you'll also receive a cash grant of up to ￡25,000 per property.
• Any business which gets small business rates relief, including those in the retail, hospitality or leisure sectors, will receive a cash grant of ￡10,000 (increased from ￡3,000 announced in the 11 March Budget).
• The Rates holiday and cash grants will be administered by local authorities and should be delivered automatically, without businesses needing to claim. 

ACTION:

None required at the moment. 

Coronavirus Business Interruption Loan Scheme

• These should be available from Monday 23rd March and are delivered by lenders that partner with the British Business Bank, including all the major banks. The lender receives a guarantee of 80% of the loan amount from the government. 
• They are available for UK-based businesses with turnover of no more than ￡45 million and can provide for a facility up to ￡5 million. The borrower remains liable for 100% of the debt. 
• No interest will be charged for the first 12 months.

ACTION:

Get your financials up to date and forecasts prepared, ready for the mechanism for making applications to go live. 

Keep In Touch & Abreast of Support Initiatives

Finally - We fully expect that there will be a number of other new initiatives announced over the coming weeks. 

With this in mind, we urge you to stay in touch and keep abreast of support initiatives. We will be posting regular daily updates on our Social Media Channels and urge you to follow these for ongoing help/support.

ACTION:

Follow us on our social media channels to ensure that you keep abreast of all future developments. 

LinkedIn: Chalkhill Blue Limited OR Bristol Business Coach

Facebook: @ChalkhillBlueLtd OR ActionCOACHSouthWest

Web: www.chalkhillblue.org

Phone: 01793 239 542 

Book a call: https://calendly.com/chris-spr...