Whilst my creditors have been very understanding so far, I am concerned about how I will pay my existing debts, the ongoing bills as well as finding the money I will need to get the business back on its feet. What should I do?
This is a concern for many businesses at the moment.
Firstly, the directors need to be mindful of their duties to creditors . Click here for further information on those duties and the measures introduced by the government to help support directors during these difficult times.
There is also a raft of funding and grants as well as commercial finance that might be available to you. Click here for further information or contact us if you would like to discuss further.
If you are coming under increasing creditor pressure, there are other options to explore like the new “moratorium” procedure, which allows viable businesses in financial difficulty to work with an insolvency practitioner to obtain at least 20 business days’ breathing space from creditors to allow the business to formulate a plan to deal with its financial problems.
If you have any concerns about the viability of your business you should speak to your advisors, whether that is your lawyers, accountants or an insolvency practitioner who should be able to help you.
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Head of Commercial, Colin Hewitt, speaks with the team at NewcastleGateshead Initiative about the complexities of event cancellations and the associated legal implications.
Click here to listen to the full podcast.
Arrangements for end point assessments can be modified or rescheduled. End point assessment organisations should engage with External Quality Assurance Providers to agree arrangements for the end point assessments where face-to-face assessments are being modified. Where rescheduling is required due to Covid-19 issues and there is a specified time limit for the ESA post gateway, a further pause of 12 weeks is allowable. This should be recorded by the training provider in the ILR.
The Government will allocate £360 million to charities providing key services and supporting vulnerable people during the crisis. £200 million of this amount will be paid to Hospices UK to be distributed to hospices to help increase capacity and give stability to the sector. The remaining amount is to be allocated to:
- St Johns Ambulance to support the NHS
- victims charities, including domestic abuse, to help with potential increase in demand for charities providing these services
- charities supporting vulnerable children, so they can continue delivering services on behalf of local authorities;
- disabled people
- Citizens Advice Bureau to increase the number of staff providing advice during this difficult time
The Government Departments will identify priority recipients, with the aim that these charities will receive money in the form of a cash grant over the next few weeks and by the end of April to assist in paying amongst other costs April’s wage bill.
You cannot include the following payments in a claim:
- Discretionary bonus or commission payments
- Tips
- Non-cash payments
- Non-monetary benefits including taxable benefits in kind
- Salary sacrifice benefits that reduce an employee’s pay (however HMRC has agreed that such arrangements can be stopped by agreement if due to COVID-19 and the contract is changed)
The updated guidance has confirmed that all of the grant claimed should be paid to the employee in the form of money and that none of the grant is to the used to pay for the provision of benefits or a salary sacrifice scheme.
As a result of the CJRS being extended, the Job Retention Bonus will no longer be paid in February 2021.