To all our valued clients
We hope that you are keeping well and keeping the effects of Covid – 19 at bay.
Globally, we are experiencing new uncertainties and perhaps difficulties not faced by many small and growing businesses previously, therefore we wanted to reach out to all of our clients and try and keep you as up to date as possible with the help being provided by the government as well as including a few points to consider from a cash flow & business planning point of view:
These include:
- If your financial year-end has just passed, then send us your records as soon as you can as this will allow us to calculate any tax liabilities sooner - giving you the best part of 6-9 months to liaise with HMRC on how you will be able to pay any outstanding tax and plan your required cashflow.
- Before making any significant decisions about your business, especially if you are looking to close or sell your business – please first pick up the phone and speak to us to see if there are any better alternatives
- If you have outstanding tax bills, or forthcoming 31st July Self- assessment instalments which you may struggle to pay - then contact HMRC as you may be eligible for support and time to pay – https://www.gov.uk/difficulties-paying-hmrc there is also further details on a dedicated phoneline below.
- Check your insurance policies with regards to sickness claims for you and your staff – particularly those of you with Keyman insurance
- Check with your bank what help is available, many banks have already pledged support by way of mortgage repayment holidays, temporary increases in credit card limits, waivers of fees etc
- Contact your suppliers to ensure continuity of supplies will exist for the foreseeable future, also investigate alternative suppliers as back up.
- Try not to make late payments, instead contact your creditors and suggest instalments to ease cashflow. Perhaps consider offering instalments to your own customers to maintain your incoming cashflow.
- Review your business costs and reduce any discretionary and non-essential expenses.
- Please see the attached Government guidance - Covid-19: Guidance for employers and businesses: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/872618/Covid-19_Budget_fact_sheet_FINAL__1_.pdf
Recently announced Government measures currently include:
A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees. Businesses can access the first 6 months of that finance interest free, as government will cover the first 6 months of interest payments.
For businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave.
A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
There will be a £10,000 cash grant to our smallest businesses, delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by their local authority - they do not need to apply. The funding will be provided to local authorities in early April. Guidance for local authorities on the scheme will be provided shortly.
Finally, the government is introducing a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
A £25,000 grant will also be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
Any enquiries on eligibility for, or provision of, the reliefs should be directed to the relevant local authority. Guidance for local authorities on the business rates holiday will be published by 20 March.
At Hunters and Co, we are trying to keep the office open for as long as possible and are available on email and telephone certainly for the foreseeable future to answer any queries or concerns you may have in the current economic situation. We are here to help you…….
Wishing you all the very best in these worrying times.
With kind regards
Esin and all the team at Hunter & Co