Over the past week, we have been supporting many of you through the minefield of the new government packages that are available to help fund individuals and businesses that have been affected by the government’s decision to restrict movement and close various business sectors.
As you can imagine, there are some worried and confused people concerned about their livelihoods right now. Help is available if you need it, however, the finer details of the packages are still be confirmed.
You may have seen and read some of what is available online or in the news as it’s been well documented this past week. If you are still unsure, we do have a factsheet available on request.
Coronavirus Business interruption loan scheme (CBILS):
We have received various feedback from clients and from industry insights that suggest access to the Coronavirus Business interruption loan scheme funding is not that great! The application process is tight, meaning certain criteria is met before lending is even considered and clients are experiencing various degrees of success with their banks.
Many of the banks and lenders are requesting proof that tax payments such as VAT, Corporation Tax, PAYE and personal tax have been deferred and agreed by HMRC. Once this has been confirmed lenders are then asking for a copy of the last set of filed accounts, projected income and expenditure in the form of a cashflow forecast, and various other management accounts to demonstrate the business is a going concern and not a failing business before this crisis hit.
In addition, to this, all non-essential business expenditure will need to stop and only then, once all the above has been met, the banks will only offer funding on all necessary expenditure only for a fixed amount of time. Banks are advising their customers that the application process itself can take a ‘few weeks’ to process.
Any business owner thinking they could call their bank and get access to cash the same day are realising this is not the case. This restriction on cash will inevitably mean that some businesses will fail as a result of this.
The chancellor may be addressing this issue later today so we should have an update shortly.
Many clients have been contacting us with HR questions relating to payroll. Presently, we do not offer HR support internally, although this is something we are looking at in the future.
Questions around SSP, Letters for furloughed employees etc are all matters for qualified and experienced HR professionals to answer. Our payroll services simply provide support for the processing of payroll only. If you do need HR support, we have been referring clients to a few that we know and trust and are happy to provide details on request.