A brief summary of the proposals made in the last few days;

Undeniably, there is an extremely generous raft of support offered by the Government. How quick you want to access it will depend on one thing – how soon you anticipate running out of cash.

I’m the first to understand that for most of you it’s not that easy. For many, the numbers part of what you do is a nightmare, you’ve probably never prepared a cash flow in your life, spreadsheets are for accountants – not you, you don’t have the faintest clue where to start or what’s likely to happen. Agreed. But I’m reaching out to all of you help you start this process. We want your business here in 6 months time, almost as much as you do, and if you have not prepared a plan then the chances of that reduce. Many of you are making knee-jerk reactions (some of which may turn out to be right) but it’s massively important that you not only make decisions, but you do so in the right order, and at the right time.

My are accounts team are staying full time and their primary role is to help you with whatever you need to get you through this hideous time, and that includes helping you make a plan/cash flow.

And in that plan you need to consider

Coronavirus Job Retention scheme

  •            > applied for by the employer (to HMRC via a portal)
  •            > to pay up to 80% of wage costs (not clear, but this could include the PAYE costs of employment)
  •            > where you would otherwise consider making that employee redundant
  •            > precise details not yet released
  •            > backdated to 1 March 2020

Deferring tax and VAT payments

  •            > VAT normally paid in the period (now) to 30 June 2020, can be deferred
  •            > no need to apply
  •            > but will need to be repaid by 31 March 2021 (no promises, but I predict some leniency here)

Self assessment tax – due 31 July 2020

postponed to 31 January 2021

Business Rates and Grants

  • retail, hospitality, leisure – shops, restaurants, cafes, hotels, guest houses
  •            > 12 month rates holiday for 20/21
  •            > Automatic Grant – £25k – you will be contacted by your Local Authority
  •            > all businesses eligible for Small Business rate relief
  •            > Automatic Grant – £10k –  you will be contacted by your Local Authority

Corona Virus Business Interruption Loan Scheme

  •            > accessed through High Street Banks (and others)
  •            > up to £5m
  •            > Government guaranteed up to 80% (I previously thought it was 100%)
  •            > first 12 months interest free – although you will repay the capital
  •            > It is accessible when conventional routes are unavailable to borrowers (I  think this means you can’t use it to replace existing debt – it’s a new source of funding, not a replacement)
  •            >this link is very useful https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

All taxes – time to pay

  • if you are unable to make the payment due to the impact on your business of COVID-19 call HMRC to agree postponement on 0800 0159 559

Insurance cover

it’s officially a pandemic and if you have such cover, it can now be triggered

good luck with that – we contacted our Insurers and the computer said no – the reason being that COVID-19 wasn’t listed – we pointed out that it was hardly surprising as it did not exist at the time we took out our policy. Insurance company 1 – the rest of us 0.


Hopefully the above a) lists the support and grants that are available, b) allows you to consider how they might impact your business as you prepare your cash flow.

Happy to be contacted by any means;

Landline – 01326 660022

Mobile/WhatsApp/Text – 07779799995 – Mike Hutchinson

Zoom – ID 205 677 7765 – Mike Hutchinson