COVID-19 Business Support Update

Friday, May 29th, 2020

Here at Copia Wealth & Tax Ltd, our team continues to operate from home and whilst we have no immediate plans to fully re-open the office, we are now approaching the time when we need to consider when and how we are going to do this, as are many of our clients. We have some thoughts on that below. 

Also, there have been plenty of announcements in the last week or so in respect of business support and so we have provided you with a brief update on those too.

Emerging from the lockdown

As we emerge slowly from lockdown, now is a good time to “take stock” of things and look ahead to how we can run our businesses in the so-called “New Normal” environment we face.

It seems reasonably certain that some form of social distancing will remain, and many businesses are adopting new ways of working within the rules. The Government has published guidance to assist employers: https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19

We suggest you keep reviewing these guidelines as they are amended frequently. It will be best practice to undertake a risk assessment taking into account the Government guidance to provide protection for the employer as well as the employee. For those businesses who may need to invest in protective screens, one of our manufacturing clients has pivoted their business to produce these, so let us know and we can connect you.

Update on business support 

The previously reported Government support schemes continue.

The Job Retention scheme has been extended until October, although we are not yet sure what percentage of support the Government will provide post July and whether it will contain more flexibility; e.g. part furlough arrangements and no minimum 3-week period. We will let you know as further details emerge.

Self-employed income support grants are now open for applicants on-line and we have no confirmation yet as to whether the Government will extend the scheme. If they do, we will provide you with further information. We are not able to process claims for our clients due to HMRC restrictions on this, but the system calculates your entitlement for you based on an average of your last 3 year’s self-employed profits on your tax returns. We have already had some clients querying their calculation, especially those with a short timeline of being self-employed as the calculation often brings in the first year of self-employment when profits can be quite low.

The online service you will use to reclaim Statutory Sick Pay (SSP) for employees taking sick leave due to COVID-19 (or self-isolating) will be available from 26 May 2020. See:    https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

We still await further details to be published around the discretionary SME grant fund devised to support businesses who did not qualify for the original scheme. This will be administered by Local Authorities and we will keep you informed of further announcements about the scheme when nearby Local Authorities provide further guidance.

Bounce back and CBILS loans remain available to businesses. The former has the benefit of being 100% guaranteed by the Government with no capital or interest to pay in the first year, with a maximum loan of the lower of £50,000 or 25% of revenue. We have had several clients in contact with us who were unsure whether to apply. Our advice would be that if you are in any doubt about requiring the funds you should make an application. If the funds do not end up being needed you can repay them at no cost in the next 12 months or potentially utilise them to refinance other, more expensive, borrowings or utilise to fund further business growth.

Just a reminder that you can find out what Government support schemes are available here: https://www.gov.uk/business-coronavirus-support-finder 

It is worth checking to ensure you have applied for all that you are entitled to and giving us a call if you need any advice. Also remember the mortgage holiday scheme has been extended if you need to use it.

Key points to consider right now

The reality of the situation is that not all businesses are going to survive despite the Government’s support schemes. If your customers are in isolation and cannot get to you or you cannot deliver or they cannot pay you, there is the reality of reduced or no sales for the next few months and even beyond if the virus remains. 

It is worth remembering that the situation we face is one we cannot change. What you can do is stay healthy and help ensure your loved ones do too. After all, if the business closes and you are healthy you can start again, whilst of course the reverse may not be true.  

Many businesses are re-purposing or pivoting their operations and are adapting to the new ways of doing things. We are helping some with digital bookkeeping and forecasting with “What if” scenarios so they can look at all possible outcomes.

We suggest you focus on the following as we start to emerge from this crisis:

In conclusion, as we enter a new phase in this crisis you need to maintain your health and welfare as well as planning for getting your business back on track. We are delighted we have not yet had to have difficult conversations with any of our clients about their future viability and long may this continue. 

As always, our professional team here at Copia Wealth & Tax Ltd, Wolverhampton are here to help, and as we are only ever a phone call away, please do get in touch if you think we may be able to. 

To do that, just call 01902 783172 or alternatively click HERE to contact us via our website and one of our friendly expert business advisers will call you back to arrange a convenient time for a confidential no obligation chat; together we are stronger!

We look forward to hearing from you, but in the meantime though, please stay safe.