According to recent research, many employers may be committing acts of fraud in relation to the Coronavirus Job Retention Scheme. If you are an employer who has furloughed staff, ensure that you understand and adhere to the rules or you could risk charges and penalties.
If, before lockdown, you had ordered or were looking to purchase new equipment or commercial properties, all which are subject to VAT liabilities, you may now find that you have a funding gap for the VAT.
What you need to know about the Bounce Back Loan Scheme (BBLS)
From today, small businesses that have been adversely impacted by the Covid-19 outbreak can apply to the Bounce Back Loan Scheme. Businesses can apply for loans between £2,000 and £50,000 for a fixed term of 6 years. The maximum you can borrow is up to 25% of your business’ turnover in 2019.
Topics: Business Finance
With numerous calls from our clients, asking how and what support is out there for their business, I thought I would offer a round up blog, to ensure you are all aware of the support that is currently available.
Support for businesses through deferring of VAT and Income Tax Payments
Whilst waiting for the Coronavirus Business Interruption Loan Scheme criteria and loan application to be issued this week, you need to plan in your cash flow forecasting.
We will provide any further updates as soon as we have them.
The Government will support UK businesses by deferring VAT payments for 3 x months. The period being 20th March 2020 until 30th June 2020.
If you are self-employed, Income Tax payments due in July 2020 under the Self- Assessment system will be deferred to January 2021.
Here’s our first piece of advice on what to do
whilst waiting for more information about the Government’s Relief Scheme
- Communicate with your Creditors and Debtors about payment terms.
- Ensure you have access to accurate and organised financial information
about your business to make informed decisions.
- Lenders will want to see forecasts for your business and know that you
are in control of the areas you can control.
Most businesses are keen to grow as part of their natural development. Expansion requires investment in new assets, new staff or premises. To raise capital for this, most business owners will consider a secured business loan as an option. Secured business loans tend to be larger cash sums, used to finance high-value equipment or multi-tiered expansion strategies. They are also an option for businesses needing lower sums that find it hard to get an unsecured loan. This may be due to having a lower credit rating, a short trading history, or insufficient capital and assets in the business to offset the lending risk.
Growing a business requires a reliable cash flow and often an injection of capital. The health of a company’s finances depends on customers paying their invoices on time. Even with standard business terms in place, some customers are slow to settle their accounts. This can limit any business expansion plans. There is a way to harness the working capital trapped in unpaid invoices. Known as invoice finance, there are two main mechanisms for freeing up your company’s cash flow.