As we’re slowly starting to ease out of lockdown, businesses are now faced with a unique challenge. While there’s no doubt that you’re excited about getting up-and-running once again, you’re also likely to have concerns about how you’re going to do this while keeping staff, customers and yourself safe.
It looks like social distancing is a concept we’re going to have to continue to adopt for some time. This means that businesses need to identify new ways in which they can operate while adhering to government guidelines. While finding your ‘new normal’ may feel like an overwhelming task, there is plenty of help available.
The government has published guidance to assist employers, and as always, PKB is here to help. Below we’ve listed all the government schemes which are available as well as some top tips for getting your businesses through the new changes.
Government support during Coronavirus
The Coronavirus Job Retention scheme has been extended until October, although we’re not sure what percentage of support the government will provide after July. It has been reported that the Treasury will direct employers to cover between 20% and 30% of an employee’s wage, and firms will also pay their national insurance contributions, which is about 5% of wages. We will update you when more detailed information is announced.
Self-Employment Income Support grants are now open for applications and those who applied on the day the scheme opened have already started to receive their funds. We have no confirmation yet as to whether the government will extend the scheme. If and when they do, we’ll provide further information.
An online service to reclaim Statutory Sick Pay (SSP) will be available from 26 May 2020.
You can find a list of all the government support available here.
We have also been helping clients with bank loans and VAT deferral so please contact us about the loans available if you haven’t already done so.
Getting your business through the Coronavirus outbreak
Many businesses are re-purposing or pivoting their operations and are adapting to the new way of doing things. Below we share some great tips to help get your business through the coming weeks.
- Stay healthy, follow the government guidelines for yourself, family, co-workers, employees and your community. Work from home where you can.
- Plan – what will your business look like in six months’ time? The best way to predict your future is to create it.
- Take this time to look at your business. Identify your strengths, weaknesses, opportunities and threats. Use this information to draft a plan detailing what you need to do to move forward,
- Work out your expenses (including salaries) for the next six months.
- Estimate your cash flow over the next six months. We can help you with this if necessary.
- Once you have a grasp on your figures and you consider you have a “viable” business (can you survive for the next six months?):
- Involve employees in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
- Review your list of products and services and eliminate those that are unprofitable or aren’t core products/services.
- Stop doing business with ‘won’t pay’ customers.
- Review your debtors list and chase up overdue invoices (if appropriate).
- Offer existing debtors extended payment terms and/or discounts.
- Agree extended payment terms with all suppliers in advance.
- Put extra effort into making sure your relationships with your better customers are solid.
- If your business is not viable – talk to us and we can run through your options.
If you need help with any aspect of managing your business or finances, please don’t hesitate to get in touch with PKB.
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