So in light of the announcements that all non-essential businesses must close. This is clearly unprecedented and something we are all unlikely to have done before – Here are 5 things you should look at doing today:
1) Staff
As detailed yesterday there is a government scheme in place for the government to assist with workers’ wages. It is important that you speak to all of your employees and update them as they are likely to be extremely anxious.
Where relevant, the employees should be notified that they have been classified as furloughed workers. There is still uncertainty as to whether the business is required to pay the additional 20% or whether the business can reduce salaries despite the existence of employment contracts.
In these tough times, it may be that redundancy is unfortunately the most appropriate course of action.
2) Cancel VAT Direct debits
VAT payments for returns ending during the period 20 March 2020 and 30 June 2020 will be delayed until the end of the 2020/21 tax year. BUT must still be filed.
We have spoken to HMRC and they have confirmed that any client on a direct debit must cancel the DD if they do not want this to be collected by HMRC, otherwise HMRC will continue to collect.
The quickest way to do this is to login to your online Government Gateway Account and cancel the DD, this will be shown on the first page of VAT saying a DD is set up.
3) Consider Mortgage payment holidays
As previously announced, the government have offered a scheme for a 3 month repayment holiday, without any negative credit impact. Most of the major banks, now have a quick online system for doing so. Whilst this will not affect your business, it will clearly help your personal cashflow.
If you require further specifics, you should speak to you bank / Independent Financial Adviser.
4) Speak to your bank if additional funding is needed
From communications I have had, it is great to see that the banks are looking to help businesses wherever they can. The banks are offering a number of support measures including additional loans, increased overdrafts and repayment holidays.
If you anticipate additional funding requirements, it is important to speak to the bank as early as possible to give them time to put in place the required facilities. As they are receiving a large number of enquiries, it is best to plan in advance of the need arising.
5) Find ways to work remotely
Whilst this is not suitable for all businesses, there are a number of businesses who have found new ways of working for the short term to keep trading. Advances in telecoms and IT facilitate working to some degree.
On another note, there are also rumours of support measures to be announced today for self-employed individuals. I am hopeful these come to fruition and that I can share details of these in due course.