Knowledge

Checklist of things to consider for your business during these times:

A few pointers as a “checklist” of things you should consider making sure you have boxed off, hopefully, it will help some of you:

 

If you had business premises and claimed small business rates relief in the past, make sure you have got the £10,000 or £25,000 council grant.

 

If you are furloughing your staff you can pay them the higher of either the average of their 2019-20 wages or the same month last year – it may give staff a little extra in one or two months.

 

Remember that staff will still accrue holiday pay throughout their furlough period so be careful not to be stung by large holiday bookings/payments when we are back. Government guidance isn’t 100% clear yet but it is becoming more likely that you could pay the holiday pay at 100% and claim back 80% as normal under the furlough scheme. Get advice on this before you go for it though, could save you a small fortune!

 

The self-employed grant applications are opening randomly between today and next week so make sure you apply as soon as you can if relevant. Seems to be an easy application process with payments being promised within 6 days.

 

If you have got a CBILS loan of up to £50k there is a possibility of converting it to a BBL which has less personal guarantee and lower interest – deadline to do this is around November but well worth a look!

 

The BBL is 2.5% which is a very low rate, cashflow permitting can you use this to repay more expensive business debts on HP’s credit cards (careful of early repayment charges) to save you a few quid?

 

Cancel your VAT direct debits! If you do not do this the payment will still be taken on the due date after submitting the VAT returns even though the tax office said they would not collect. Cancelling it is the only way to take the tax office up on this.

 

Personal tax payments on account due in July don’t need to be paid until January 2021 which by that time you will have a better idea of whether the income for you 2020-21 tax return is lower and those payments can, therefore, be reduced.

 

Not that I wish this on anyone but if you decide to close up and have made losses in the year you cease you get the ability to carry those losses back to trading profits made over the last 3 years which means you may stand a chance of getting some tax back.

 

Communicating with the tax office where necessary is very difficult and it is likely you will be on hold for over an hour and I would not be surprised if they hang up. I would recommend either their web chat or if it is to do with arranging deferments on tax payments phone 0800 024 1222 instead.

 

Review your costs and get rid of or reduce as many as possible.

 

Don’t neglect your marketing, do plenty now so that when things do open back up you’re the first on peoples minds!

 

Review your business practices, is there anything you can do differently, more efficiently etc, now is the free time you’ve always complained you never had to make those changes before.

 

Can you move any of your computer systems into the cloud to better facilitate different working environments (e.g. your bookkeeping software, there is now some really decent products out there you should consider if you are still on a desktop-based system)

 

Get some exercise its good for your physical and mental health!

 

Have some time off, you need it!

 

Spend time with your family, this is time you’ll never be able to buyback.

 

I hope this helps!