Lockdown2020 – immediate business recommendations
- Stop all payments of VAT, PAYE/NI, Corporation Tax and anything else to government. Revisit when various support and loan scheme arrangements become clearer
- Cancel rates payment direct debits for now, regardless of whether announced schemes apply. Again, revisit when various support and loan scheme arrangements become clearer
- Review all direct debits and consider whether any can be stopped to preserve cash without causing disruption, excessive risk, later legal disputes or beggaring thy neighbour
- Consider discussing deferred payment terms with large (PLC sized) suppliers
- Firmly but politely chase large (PLC sized) customers and make clear that the Late Payment of Commercial Debts (Interest) Act 1998 rules will be applied and 8% over base interest charged on payments beyond terms (we have an Excel file that calculates charges and concatenates into a letter that largely automates this)
- Approach landlords about deferral of rent payments
- Do NOT withhold paying pension contributions from past payroll periods over to providers – no one should be acting like Robert Maxwell
- Advise staff working from home to calculate incremental costs incurred on heating and power (et al) and make a claim on their next tax return or via a P87 Claim Form
- Try to treat others as you’d like them to treat you – employees and small businesses are very different to Mega-Corp and public bodies
- Write to the bank, telling them what you are doing to manage the situation and that you’ll keep them informed further and enquiring what is their process to access the loans the government is expecting them to handle (good to know even if don’t avail of them)
- If business has external shareholders, keep them informed too
- Call us discuss on 07966 292430 to these and other ideas to keep the business ticking over or get it safely hibernated until things settle