With the outbreak of the Corona Virus pandemic across the globe, taking into account the potential impact on industry and listening to your concerns, we have produced this business update to provide our thoughts on what practical actions can be taken to reduce the potential impact.
The outbreak has many potential impacts for industry including; increase in price for goods, difficulty in sourcing materials, team members requiring time off work to self-isolate or due to illness and a decrease in sales.
All these can lead to added pressure on your business and action should be taken now to ensure you are as prepared as you can be.
Insurance
Insurance documents should be reviewed to determine if the business is covered for business interruption. Confirm what action should be taken so a potential claim would be valid.
Cash flow
Cash flow will be key during the period of uncertainty. Any action that can be taken to improve cash flow should be taken. It is recommended any discretionary expenditure be put on hold.
Payment holidays
You should consider requesting payment holidays from any bank lending and pension commitments.
Income Tax, Corporation Tax, VAT and PAYE
The Government has announced the “Time to pay service” will be scaled up with a dedicated helpline to assist businesses with the payment of any Income Tax, Corporation Tax, VAT or PAYE which becomes due providing flexibility to pay these amounts.
The number to contact is 0800 0159 559.
Employee Sick Pay
Statutory Sick pay (SSP) will be paid from day 1 rather than day 4. This will also apply for those who self-isolate even if they do not show symptoms.
The cost of providing SSP for up to 2 weeks will be refunded by the Government in full for employers with less than 250 employees.
Employment and Support Allowance
For self-employed people and for employees earning below the Lower Earnings Limit that are not entitled to claim SSP, contributions-based Employment and Support Allowance (ESA) may be available.
ESA will be paid from day 1 instead of day 8 for those affected or in self isolation without symptoms.
Bank of England
The Bank of England have reduced interest rates on 11 March 2020 from 0.75% to 0.25%. This will reduce the cost of borrowing with the aim of boosting the economy. This action should reduce the cost of lending for small businesses.
Stock levels
Consider if your stock levels are appropriate for your projected level of business. It will be a balancing act considering what items may become in short supply and ensuring you do not run out, against having too much cash tied up in stock.
Staffing
The government has suggested up to a fifth of the work force could be off work during the outbreak.
If you are not as busy as anticipated, send staff home earlier to ensure you save where you can.
As the pandemic worsens it is considered customers will understand your challenges regarding service if staff members are off work.
Please download our Business Update on actions you should take to minimise the impact and disruption to your business here:
