Coronavirus Update – 17/03/2020

Nick Robinson

Mar 18, 2020 | Business

Yorkshire Accountancy Support

Firstly (for clients), we have some capacity within the team and, whilst that capacity is available, we’re happy to support you on a case by case basis in connection with needs associated to coronavirus – hopefully at no cost.

So, for example, if you are in an industry that has been severely affected already (travel, tourism, hospitality etc) we’d be delighted to help with some short-term cash flow projections, draft accounts for the bank or just act as a sounding board.

Please let us know if you need any support like this and we can chat it through.

The majority of the team is now working from home. We have undertaken remote working since around 2010, so this is nothing new to us. All team members have remote access to our office servers and telephone lines will be open as usual. Should your call go through to voicemail, please leave us a message, we will return your call.

If you need to drop something into the office, please call 01482 845750 before you leave to make sure there will be someone in to meet you.

All meetings going forward will be moved to the telephone or Zoom. We’ll ask what you prefer when we book the appointment.

Talking to several clients this week it is clear the community is already experiencing cancelled orders/events/contracts, supply chain issues and some challenges with cashflow.

Review your overheads

If you are predicting cashflow difficulties it is sensible to review your overheads in the business and pause any spending you feel may not be necessary at this time.

The first thing to do is categorise expenditure (both personal and business) into “essential” and “nice to have”. Once you have those numbers you can better appraise your situation and we can support you further with short term cash flow forecasts.

HR Department

Our HR support is through Vantage. If you need any support relating to HR, please call my office and speak with me. I can provide you with the Vantage membership number and contact details and you can contact them to discuss your issues at no cost.

Your own Bank

Contact your own bank, either your dedicated manager if you have one or your business call centre to discuss your options should you need a new or increased overdraft limit, asset finance, credit cards or other forms of temporary finance.

Other potential funding sources

Please note these are only a few of the options available to you and these do not form a recommendation by Yorkshire Accountancy.

Capital On Tap – https://www.capitalontap.com/en/

Funding Circle – https://www.fundingcircle.com/uk/

Iwoca – https://www.iwoca.co.uk/

NatWest Rapid Cash – https://rapidcash.natwest.com/

Satago – https://www.satago.com/

We also have some excellent VAT/Tax lenders who will provide much needed cash flow assistance and help spread those bills. Please contact me.

Turning now to the Government support

In the Budget 2020, the Chancellor announced that a ‘Coronavirus Business Interruption Loan Scheme’ (CBILS) will temporarily replace the Enterprise Finance Guarantee (EFG), becoming available over the coming weeks.

It will operate in a similar way to EFG and be provided by the British Business Bank, but will offer more attractive terms for both businesses and lenders, with the aim of supporting the continued provision of finance to UK businesses during the Covid-19 outbreak.

As it stands, we do not know much more than this. It was announced tonight that the loans will be ready from next week to apply for and that the Government have released substantial additional funds.

More information will be available in the coming days and weeks, please click on the link below for updated advice:-https://www.british-business-bank.co.uk/ourpartners/supporting-business-loans-enterprise-finance-guarantee/

Business rates and Grants

In the budget the Government announced a £3K grant to businesses eligible to 100% business rates relief. This has been increased to £10K (£25K if in eligible industries). This will be claimed direct from local authorities and they will write to you in due course. We will also keep you informed.

Rates holidays extended to ALL businesses – but we need to read the small print.

HMRC and Time to Pay

HMRC have launched a helpline to help businesses concerned about paying their tax due to coronavirus (COVID-19). Again, this appears to be a “work in progress”. You will find more details below, but if you have any concerns about making payments to the tax authorities please call us immediately for support.

https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19#to-support-businesses-experiencing-increases-in-costs-or-financial-disruptions

Official guidance for employers

For HMRC’s guidance for employers, please follow the link below:-https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/guidance-for-employers-and-businesses-on-covid-19

Statutory Sick Pay SSP Support

To support businesses experiencing increases in costs or financial disruptions the government will bring forward legislation to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.

The eligibility criteria for the scheme will be as follows: –

• This refund will cover up to two weeks’ SSP per eligible employee who has been off work because of COVID-19.
• Employers with fewer than 250 employees will be eligible.
• The size of an employer will be determined by the number of people they employed as of 29 February 2020.
• Employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19.
• Employers should maintain records of staff absences, but employees will not need to provide a GP fit note.
• The eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to self-isolators comes into force.
• The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible.
• Existing systems are not designed to facilitate employer refunds for SSP.
• The information above has been taken from the following source: -https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/871900/Covid-19_Budget_fact_sheet_FINAL.pdf

Again, it is unclear how this will be organised and how quickly the payroll software will catch up with the situation.

We are more than happy to discuss your individual circumstances and advise on the best way forward.

We appreciate these are unprecedented and challenging times to be in business and we all face a period of uncertainty. No one can predict the future but we believe we can all pull together as businesses and support each other.

The Yorkshire Accountancy team are here to help you.

If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.

Regards and stay safe,

Nick Robinson

Director

www.yorkshireaccountancy.co.uk