On 17 March The Chancellor announced further support for UK businesses affected by Covid-19. My colleague Andrew Jordan has already produced a blog about the help available for businesses with premises and / or in the retail, leisure and hospitality sectors. The following summarises the key funding /cash flow aspects:
- Loan guarantee scheme (backed 80% by the government) for businesses affected
- 3 month mortgage payment holidays for people affected by the virus (no help currently for renters)
- Potential of business interruption claims from your insurers
All of these measures have been announced recently but as yet no detail has been provided on how to apply etc. We too are awaiting on this detail but once we are aware communications and support will be sent out/offered.
In the meantime, we suggest you:
- Talk to your staff and look at what measures are available within your staff contracts
- Talk to any funders you have about delaying payments
- Talk to your insurers
- Talk to suppliers
- Talk to landlords
- Talk to your bank
- Talk to HMRC support line which can be accessed on 0800 0159 559 to delay payments of PAYE, VAT and Corporation Tax
What will aid you in these conversations will be:
- 3-6 month cash flow forecasts or an idea of what your minimum monthly payments are
- 3 months gross profit results for March 19 to May 19 (insurance claims)
- Know what bank facilities you have in place
It’s a challenge that everyone will face so dialogue, without exception, is key.
We are here with support, advice or just as a sounding board so please don’t hesitate to lean on us.
Sean Maloney 18 March 2020