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Apr 24

Admin

  • Thu 24th April 2020
  • Admin
Weekly review

The impact of COVID-19/coronavirus and associated mandatory lockdown is now being felt in full by the UK economy, with the OBR warning of a potential 35% fall in UK GDP.

[Updated: 24th April 2020 - 08:45]

COVID19 'Coronavirus' insolvency advice.

The government has launched a range of support initiatives, which are available to businesses and individuals experiencing financial difficulty as a result of the disruption caused

Below we have collated direct links to the government initiatives and support so you can access all the information in one place.


Note to Individuals:

Broad support has been offered for those on PAYE (up to £2.5k per month), however support those self-employed and company directors is less comprehensive and many are falling through the cracks. If after looking into the various government initiatives below you find there is insufficient support, and you have large amounts of unserviceable debt, you may conclude it may be better to draw a line in the sand and resolve your debt issues through a formal insolvency procedure such as entering into an IVA or filing for bankruptcy. If you are considering these options, or are unsure, we can offer expert advice in this area.

Note to Businesses and Directors:

The range of issues faced by business is vast - ranging from the slight disruption to operations by the introduction of social distancing measures to being prohibited from doing any business at all in some sectors.

Some of the support being offered to businesses comes in the way of loans and as such must be paid back in the future. The key to remember here is, that unless the business was viable prior to lockdown, additional debt will only make the matter worse. It has been reported to us, that in some instances banks are asking directors to personally guarantee the loans. This removes the limited liability protection a company offers and shifts the risk directly onto the company director/s.

We have had many calls from company directors in the past couple of weeks, and in some circumstances it has been the best option to place the company into a formal insolvency procedure, and in many cases the ultimate aim has been to rescue the company. If you would like advice regarding business recovery or insolvency, please get in touch.


The government have announced several support initiatives which are available to businesses including:


COVID-19: guidance for employees, employers and businesses

The Governments official guidance for employees and businesses
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19


Financial support for businesses during coronavirus (COVID-19)

A comprehensive list of all government financial support available to businesses
https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19


Find coronavirus financial support for your business

Direct link to business support finder wizard
https://www.gov.uk/business-coronavirus-support-finder


Coronavirus Job Retention Scheme

Direct link to business support finder wizard
https://www.gov.uk/business-coronavirus-support-finder


Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs)
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils-2/

Other Support:


Ban on evictions for commercial tenants

Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction. [23rd March 2020]
https://www.gov.uk/government/news/extra-protection-for-businesses-with-ban-on-evictions-for-commercial-tenants-who-miss-rent-payments


The government have announced the following support for individuals and the self-employed:


COVID-19: guidance for employees

Employees rights and obligations
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees


Check if your employer can use the Coronavirus Job Retention Scheme

Find out if you are eligible, and how much your employer can claim
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme


Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme

Support for the self-employed. Find out if you are eligible and when you can claim
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme


Coronavirus support for employees, benefit claimants and businesses

A range of extra support and measures will be in place to help workers, benefit claimants and businesses affected by coronavirus.
https://www.gov.uk/government/news/coronavirus-support-for-employees-benefit-claimants-and-businesses


You or your business may be eligible for support, but it is important to recognise that some of these initiatives are loans which will need to be paid back in the future. If you are worried about your or your business's financial situation and would like advice on business recovery or insolvency options, you can call us on:

 

0800 288 4088

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