These actions will apply to businesses and companies regardless of size. Announcements from the Chancellor have set out a raft of measures to assist businesses and many of these will make a large difference to many.
Some of the announcements are still lacking detail and as always, the devil is in the detail.
There are a number of actions that business can undertake now in order to prepare themselves for speedy funding and grant applications and this checklist will help you to prioritise the most time-critical.
We are being told that banks and HMRC are being very supportive but there are two key points that may influence the checklist below:
- A ‘Business Plan’ for recovery and repayment will put you on the front foot – you should be ready to talk through this plan with lenders and creditors
- Be mindful of any director, personal or family member guarantees that already exist for loans. New guarantees may be required for any government backed loan schemes
Business owners should be considering the following:
- The Coronavirus job retention scheme
- Asking staff to bring forward holidays or consider short time working
- Open dialogue with all stakeholders (customers, suppliers, contractors etc)
- Time to Pay, defer VAT/PAYE/NIC/CIS/MGD
- Consider deferring rates payments (where possible)
- Where applicable, claim new Business Rates Reliefs
- Maintain an open dialogue with landlords (agree rent holidays if possible)
- Coronavirus Business Interruption Loan Scheme. (Please note these are loans not grants and a business plan with sets out your ability to repay this loan will be required)
- Defer capital expenditure
- Apply for a break on finance repayments (HP agreements, lease hire).
- Improve and accelerate Income
- Credit Control is of tantamount importance
- Reduce stock levels
- Review insurance policies
- Review contracts and advance orders
- Review routes to market
- Review and where possible revise you T&C’s
There are many practical steps which businesses who are in a stronger position will be able to take either themselves or with help from their accountants and legal advisers.
If you wish to speak to a member of our team regarding any item covered in this Covid-19 business checklist please speak to us on 020 7330 0000.