Professionals at Cotswold-based accountancy firm, McGills, which has offices in Cirencester and Malmesbury, have said that businesses can get through the coronavirus crisis by making the most of the Government support announced in recent weeks and taking other steps to manage their cash flow.
Since the crisis began, Chancellor, Rishi Sunak, has unveiled a range of measures targeted at businesses large and small, as well as employees and the self-employed.
Most notable amongst these schemes are the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Job Retention Scheme (CJRS) and the Self-employed Income Support Scheme (SEISS).
CBILS provides finance facilities to SMEs of between £1,000 and £5 million, backed by a Government guarantee and interest-free for a year. CJRS promises a grant, capped at £2,500 a month to businesses, worth up to 80 per cent of the usual wages of ‘furloughed’ employees on the PAYE payroll on 28 February 2020, initially covering March, April and May.
‘Furloughed’ employees remain on the payroll but must not carry out any work during the period for which they are furloughed.
Meanwhile, SEISS promises grants to qualifying self-employed individuals worth 80 per cent of their usual trading profits, again capped at £2,500. However, unlike the CJRS, there is no requirement for beneficiaries of the SEISS scheme to stop working.
Sharla Dandy, a Partner at McGills Chartered Accountants, said: “CBILS, CJRS and SEISS are just three of several measures the Government has announced to support businesses through the coronavirus crisis and particularly the Stay at Home requirements.
“However, these schemes come with very specific requirements and not every scheme will be suitable in every situation.
“Furthermore, it will not necessarily be obvious to individual business owners how they can make the best use of the support available to help them through the crisis and to put them on a footing for success when things get back to normal.
“Businesses and self-employed individuals that are struggling with their cash flow or considering laying staff off should seek advice immediately to ensure they can make the most of the support available.
“Beyond the measures announced by the Government, businesses can also take steps such as moving from a weekly to a monthly payroll, while businesses and individuals can seek mortgage and loan repayment holidays.
“I am confident that by making effective use of the support on offer, which also includes measures such as deferring tax bills, and taking measures to manage their cash flow, the vast majority of businesses can make it through to the other side of the crisis.”