Director
Ria-Jaine Accounts
Last Updated – 10th May 2020
There has been lots of information to process on the COVID-19 Pandemic and we are receiving lots of enquiries. We are closely following government updates and will update this page as necessary.
UPDATE: Government Announces New Lifeline for small businesses to access cash quickly. This new support that has 100% government backed guarantee for lenders and a quick and easy application process that is set to launch 4 May 2020.
To learn more read here
We have put together some steps that you can take today to help get through this difficult time.
Cash is king and it has never been more important to review all cash flow including personal outgoings to plan and manage the next few weeks and even months. The first steps that everybody should be taking are as follows:
- Get Organised :- Start to collate all your business information or reach out to your accountant for this information as you will need to quote the relevant details such as UTR numbers and registered address when liaising with HMRC.
- Cash flow:- Work through your cash flow for the next few weeks and identify all suppliers and direct debits that you have in place and make contact to discuss payment holidays for the regular business outgoings that you still need to cover during closure. If you do not have the immediate cash flow to cover the short term business cost’s speak with your accountant to see what options may be available during the short term. Do the same with your personal outgoings to see where you can cut back.
- HMRC Liabilities :- Government have announced a deferral of HMRC liabilities and these can be arranged by calling 0800 0159 559. Cancel any direct debits to manage cash flow. More information on the Time To Pay schemes can be found here . VAT payments for the period between 20 March 202 and 30 June 2020 will also be deferred. PAYE still needs to be paid unless you specifically contact HMRC to request a deferral.
- Mortgage Holidays :- Lenders should be reaching out to customers to let them know how to receive a payment holiday during the next three months, some may communicate this via text message, letter or by notice on their website so do check this out and if they don’t make contact give them a call to get the payment holiday in place as soon as possible. It is also worth noting that legislation came into play to ban new evictions on social or privately rented property during the COVID-19 Pandemic. This includes commercial tenants that are unable to pay their rent as a result of the pandemic.
- Employment Support :- The government has announced support for furloughed employees and will cover 80% of wages during this difficult time. This scheme will reimburse employers with up to 80% of staff wage costs capped at £2,500 per employee each month and associated NIC costs/minimum employer pension contributions. This is now live and more information can be found here.
- Sick Pay :- Business with lest than 250 employed are able to have sick pay (SSP) reimbursed for up to 14 days. For full guidance on this see here.
- Business Loans :- There are now two loans available to support businesses. The business interruption loan and the bounce back loan that was recently announced. You will need to contact your business bank account provider to discuss this or get in touch as we can also help with applications via a third party. The business interruption loans were available from 23 March 2020 and are interest free for 12 months. The bounce back loan is 100% boasts a 100% lender guarantee from the government with no repayments or interest due in the first 12 months. If you already have a business interruption loan you do have the option to switch this to a bounce back loan.
- Business Rates Holiday :- Business rates holidays for the 2020/21 tax year were also announced and more information can be found here.
- Benefits:- For those that need additional support Universal Credits is another option and applications can be made on line. Please do note that if you are in receipt of working tax credits this will end once an application is made for Universal Credit so do check out your eligibility before applying.
See here for the latest guidance for sole traders!!
How can we help?
We are working closely with our clients to monitor cash flow and plan for the next few weeks using a combination of software such as cloud accounting software and online digital meetings to work through the figures and determine how long the existing cash flow will last and how we can plan for when this cash flow is too low to cover the priority business bills during closure.
If you are a business owner and you do not currently have any cloud accounting software we encourage you to look into this as it will help you to get your bookkeeping information in order and ready for any HMRC queries or coronavirus business loan interruption applications.
We have cloud software packages available that will help you through this for £20 per month for the next 12 months consisting of QuickBooks Bookkeeping Software and Receipt bank that will assist you in reviewing the business cash flow to help you plan and prepare the figures that HMRC or lenders may need.
QuickBooks also links with cashflow tool Float and we have an offer to use the software at no cost until 31 May 2020, to help businesses during this difficult time. The Float software will help you to plan and prepare for every scenario and as it connects with Quickbooks you don’t have to sit and work all the figures through a spreadsheet.
If you would like to book in any time with us to discuss your business needs you can book a call using the following link https://calendly.com/riajaine/30min a new option ‘Coronavirus’ has been added to the booking form and available time slots are being updated daily.
For the latest advice and updates on COVID-19 please see here
Friendly disclaimer: The information contained in this article is for guidance and information purposes only. It should not be relied upon as full and complete accounting, tax or legal advice. For specific advice relevant to your own situation please speak to Ria-Jaine MAAT or another professional direct.
For more business tips and to follow the COVID conversation check out the facebook group here.
Or follow on social media for the #60secondswithria hints and tips here.
Check out my interview with the amazing Carl Reader on his The Carl Reader Show’ – Ria-Jaine Raw & Uncut.
Check out my interview with the amazing Katie Godfrey, owner of KG salon, KG franchise and Lash training academy on ‘The Life Of KG’ – Guest Ria-Jaine