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Coronavirus (COVID-19): Advice for UK Business

As your trusted advisers, Old Mill is fully committed to helping businesses and individuals during the COVID-19 crisis. Our COVID-19 Hub offers practical advice and information to help you understand government policy and assess your financial situation during this time.

Our offices are currently closed due to COVID-19, however all our teams are working from home. The health and wellbeing of our teams and clients is our number one priority and we will keep you updated as we move forward.  Please contact your adviser in the first instance, or alternatively call your local office below or email enquiries@om.uk for assistance.

Exeter – 01392 214635 | Melksham – 01225 701210 | Wells – 01749 343366 | Yeovil – 01935 426181

Read on to discover insights, tools and resources to help you navigate your way through this challenging time.

Sector related COVID-19 information

Coronavirus (COVID-19): Advice for Farming, Agriculture & Rural Businesses

Coronavirus (COVID-19): Advice for Food & Drink Businesses

Coronavirus (COVID-19): Advice for Owner-Managed Businesses

Coronavirus (COVID-19): Advice for Property & Construction Businesses

Coronavirus (COVID-19): Wealth Management Advice
COVID-19 Insights

Practical advice and expert industry analysis around COVID-19

Our COVID-19 Insights offer you general support, guidance and expertise to help you make the right decisions during the crisis. For specific advice around our sectors, please head to our relevant COVID-19 sector pages; Rural, Wealth Management, Food & Drink, Owner Managed Businesses and Property & Construction.

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COVID-19: Supreme court rules in favour of small businesses in landmark business interruption insurance case

COVID-19: Annual Investment Allowance extended to the end of 2021

COVID-19: Sunak extends furlough scheme to end of March and confirms a third grant for the self-employed – 05/11/20

COVID-19: Furlough scheme extended and further support for the self-employed announced as we go back into lockdown – 02/11/20

COVID-19: Supreme court rules in favour of small businesses in landmark business interruption insurance case

COVID-19: Annual Investment Allowance extended to the end of 2021

COVID-19: Sunak extends furlough scheme to end of March and confirms a third grant for the self-employed – 05/11/20

COVID-19: Furlough scheme extended and further support for the self-employed announced as we go back into lockdown – 02/11/20

Watch it back: Later Life Webinar with our SOLLA accredited financial planners – 08/07/20

COVID-19: Chancellor outlines how the government will boost job creation – 08/07/20

How to apply for the Self-Employment Income Support Scheme (SEISS) – 13/05/20

COVID-19: Update on the 31 July 2020 self-assessment tax payment deferral announcement – 26/03/20

A message from Ian Carlson about COVID-19 – 18/03/20

COVID-19: Chancellor outlines how the government will boost job creation – 08/07/20

COVID-19: Update on the 31 July 2020 self-assessment tax payment deferral announcement – 26/03/20

COVID-19: What you need to do in order to access government support – 23/03/20

A message from Ian Carlson about COVID-19 – 18/03/20

FAQs

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  • Is my money safe in my bank account(s)?

    Banks and building societies remain a safe place to keep your cash in the short term. For those with large cash deposits, consider where these are held and the amounts held due to the level of protection for deposits under the Financial Services Compensation Scheme being restricted to just £85,000 per individual, per financial institution. Please refer to our previous article for more details and guidance. 
  • Is now a good time to invest?

    We don’t believe you can successfully time markets but, obviously, stock markets are at much reduced levels from earlier in the year. If it makes sense for you to invest for the longer term then there is no reason to believe now isn’t an appropriate time to invest, provided the funds are suitability structured. If you’re concerned about committing your funds in one go, there is the alternative of phasing funds into the new investment over a number of months.
  • Given the recent falls in value of my investment portfolio should I stop taking regular income from it?

    If you’re taking a regular income from your portfolio that isn’t being spent and is simply accumulating in your bank account (earning little or no interest), now might be the time to reconsider if that income is actually needed.

    People tend to focus on the income they receive rather than the expenditure they make. We explore expenditure as part of our cashflow planning as it helps make informed financial decisions. With a reduced ability for discretionary spending you could consider:

    • If your expenditure has gone down
    • Whether you can use this as an opportunity to save more
    • If you are making withdrawals from pensions or investments, whether you could reduce or stop these payments to preserve the funds you have.

    For most investors (where a regular income is needed), the level of income they are drawing will be sustainable even after the recent falls we have seen.

    We appreciate that in times of falling values this means that a greater percentage of the investment is being drawn; raising the prospect of accelerating the rate of any capital erosion.

    To cover income withdrawals, portfolios generally hold a proportion of the fund in cash which avoids the necessity of having to sell equity investments in the short term. If the downturn goes on for some time it’s likely that the cash held in portfolios will need to be topped up. Rather than being forced into selling equities when markets are low, we can disinvest from the defensive assets within the portfolio which have broadly maintained their value.
  • Should I delay making changes to my pensions and investments?

    We advocate reviewing your existing financial plans to ensure they remain suitable in helping you towards your financial goals now and in the future.

    This approach is probably more relevant now than ever before, where a clear investment strategy and the ongoing management of costs can have a significant impact on your investments.

    Sometimes people are put off making changes when sudden falls in value happen. If it’s in your interest to make a change we would not delay this because of a short-term reduction in the value of the plan being cashed-in or transferred because:

    • If funds are reinvested – which is very often the case – then any ‘bounce’ or future recovery should still be captured
    • Whatever the reasons for the change – lower costs, more flexibility, more suitable underlying investments etc – those are still going to be valid regardless of the value of the plan.
  • Will I run out of money?

    Cashflow planning plays an important part in delivering the peace of mind many people are looking for when considering their financial well-being.

    A cashflow analysis will consider your available assets and income / expenditure both now and into the future to paint a picture of what your financial future might look like. 

    If there’s a danger of a financial shortfall in the future the cash flow will identify this enabling you to make the necessary changes now to secure your financial well-being.

    Conversely, a cashflow analysis may identify that you have ‘more than enough’ enabling you to enjoy life more now or assist your children / chosen charities etc.

    It’s too early to make any great predictions given the unknown duration and impact on the economy and businesses generally of COVID -19. However, regularly revisiting the various cashflow  scenarios to ascertain when pinch points may occur now or in the future can allow you to take steps now to change or delay plans should it prove necessary.

  • Is now the time to use my emergency deposits?

    We advocate holding sufficient available cash to cope in an emergency, be it a one-off cost such as your car or boiler needing replacing, or to provide ‘income’ in a worst case scenario.

    Now may be an appropriate time to switch off the income you may be drawing from pension drawdown plans or investments, and instead draw down from cash reserves. If, or when, a recovery happens, these reserves can be topped up again.
  • What should I do if my pension owns my business premises?

    Many businesses will be looking to defer rental payments at the current time to help business cashflow. Where the business is your own and the premises are owned by your own SIPP or SSAS, special consideration needs to be taken into account. Please refer to our previous guidance from our expert pension team. 
  • Should my business produce forecast cashflows?

    This is a good idea anyway, but particularly at a time like this, all businesses need to have an understanding of their variables, whether it is the price of their product falling, the price of inputs rising, or even the lack of availability of some inputs. 

    SMEs are no exception, for example, in the construction sector, a business owner would need to understand what is the impact if the price of ready-mixed concrete increases by, say, 15% due to supply chain issues.  A forecast cashflow can be constructed to help manage potential cashflow issues, we have a template for this that enables you to test out different future scenarios.  Click here to learn more about why it’s important to evaluate your financials.
  • If I’m self-employed will I qualify for Universal Credit?

    If you’re self-employed and unable to work due to social distancing, then it may be that you need to look at applying for Universal Credit to help with your living costs.

    Individuals can apply for Universal Credit via this link, contacting the Universal Credit helpline on 0800 328 5644 or the new Coronavirus and claiming benefits page.

    For those who have a disability or health condition that affects how much you can work, then you may be able to claim Employment and Support Allowance, potentially in addition to Universal Credit. Full guidance can be obtained here.

    You may be eligible for the Self-Employment Income Support Scheme, click here for the Government’s guidance on how to claim 80% of your monthly trading profits for three months, up to a maximum of £7,500.

  • What do I need to do if I need to furlough my staff?

    The furloughing of staff should be justified in its relation to the impact of COVID-19. In circumstances where it’s necessary to reduce your number of staff, then it’s reasonable to consider this option. Click here for more information from us on furloughing and the Coronavirus Job Retention Scheme and here for details and how to claim on the gov.uk website.

    Importantly, furloughing does not override employment law and the employees need to agree to the variation in their terms of employment. 
  • Is my business eligible for a business rates holiday?

    The government has set out a package of targeted, temporary measures to support public services, people and businesses through this period of disruption. From a business rates perspective, these measures include:

    • A 12 month business rates holiday for all retail, hospitality and leisure businesses in England
    • Small business grant funding of £10,000 for all businesses in receipt of small business rate relief or rural rate relief

    There is also grant funding available of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000. For a more detailed examination click here.

    These grants are being administered by Local Authorities and they should have written to you by now where they expect your business to qualify.
  • Are Research and Development Grant opportunities available to owner managed businesses at this present time?

    Yes. One way to bolster your earning potential is to explore whether you can take advantage of Research and Development (R&D) tax credits, particularly as it’s a tax relief you can opt to turn into cash, and there is scope to go back and claim for the two preceding years. 

    Many business owners don’t believe they can benefit from R&D tax relief because ‘there can’t be much R&D happening in my specific sector’. But this simply isn’t true. R&D tax relief applies to many sectors, including food & drink, property & construction and manufacturing. 
  • What should I do if I am unable to pay tax liabilities?

    In the event that a business or individual is unable to pay their tax liabilities (Corporation Tax, PAYE and NI, VAT, Income Tax etc) by the due date, it may be possible to enter into what’s called a Time to Pay or TTP arrangement with HMRC. You will need to make your case to HMRC as to why you should be allowed TTP, and that these tax liabilities could be met in the future.

    If successful, this would result in the deferment of liabilities, providing some cashflow relief in these periods of disruption. NB It’s important to understand that under a TTP agreement the business will have to pay both the deferred and current tax liabilities when the TTP comes to an end. Click here for further HMRC guidance.

    There are two automatic deferrals that you don’t need to apply for:

    1. This quarter’s VAT payment can be deferred until 31 March 2021
    2. The July income tax self-assessment payment on account can be deferred until 31 January 2021

    In both cases, you will need to cancel your direct debit arrangement otherwise the money will be collected as normal.
  • Should I take advantage of the Company Accounts Filing extension?

    The government has given a three-month extension to the filing of company accounts, but it’s still quite possible for us to prepare your accounts and do any audit remotely in order to keep your business up to date.  We would advise that the option to delay your accounting process is only used as a last resort.  In many cases the support options including the Coronavirus Business Interruption Loan Scheme will require the most up-to-date set of accounts and management information for the period since the year-end.  To discuss your options further and to see if this is something that you should consider please speak to your adviser. For further details click here.
  • Are Research and Development Grant opportunities available to owner managed businesses at this present time?

    Yes. One way to bolster your earning potential is to explore whether you can take advantage of Research and Development (R&D) tax credits, particularly as it’s a tax relief you can opt to turn into cash, and there is scope to go back and claim for the two preceding years. 

    Many business owners don’t believe they can benefit from R&D tax relief because ‘there can’t be much R&D happening in my specific sector’. But this simply isn’t true. R&D tax relief applies to many sectors, including food & drink, property & construction and manufacturing. 
  • What should I do if I am unable to pay tax liabilities?

    In the event that a business or individual is unable to pay their tax liabilities (Corporation Tax, PAYE and NI, VAT, Income Tax etc) by the due date, it may be possible to enter into what’s called a Time to Pay or TTP arrangement with HMRC. You will need to make your case to HMRC as to why you should be allowed TTP, and that these tax liabilities could be met in the future.

    If successful, this would result in the deferment of liabilities, providing some cashflow relief in these periods of disruption. NB It’s important to understand that under a TTP agreement the business will have to pay both the deferred and current tax liabilities when the TTP comes to an end. Click here for further HMRC guidance.

    There are two automatic deferrals that you don’t need to apply for:

    1. This quarter’s VAT payment can be deferred until 31 March 2021
    2. The July income tax self-assessment payment on account can be deferred until 31 January 2021

    In both cases, you will need to cancel your direct debit arrangement otherwise the money will be collected as normal.
COVID-19 Video Insights

Practical personal and business related COVID-19 advice from our industry experts

Our COVID-19 video Insights offer you instant advice on government policy, as it happens. For specific tailored advice around your own business or personal situation, please don’t hesitate to get in touch.

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‘Virtual Breakfast’ Q&A with Rural Tax Adviser, Catherine Vickery & Rural Accountant, Neil Cox – 02/10/20

Financial planning guide for farmers – 21/08/20

Demystifying Research & Development (R&D) tax relief for agriculture – 24/07/20

Later Life Webinar with our SOLLA accredited financial planners – 08/07/20

‘Virtual Breakfast’ Q&A with Director & Rural Adviser, Paul Neate & Rural Tax Adviser, Catherine Vickery – 10/07/20

Implications for owner-managers of the government’s new flexi-furlough scheme – 01/07/20

‘Virtual Breakfast’ Q&A with Head of Rural, Andrew Vickery and guest panellist Victoria Read – 26/06/20

COVID-19 planning opportunities for owner-managers – 18/06/20

‘Virtual Breakfast’ Q&A with Rural Accountant, Neil Cox and Chartered Financial Planner, Julia Banwell – 12/06/20

‘Virtual Breakfast’ Q&A with Rural Accountant, Richard Haines and Rural Tax Adviser, Catherine Vickery – 05/06/20

Food & Drink Webinar with Jolyon Stonehouse & Phil Mills – 03/06/20

‘Virtual Breakfast’ Q&A with Director and Rural Accountant, Paul Neate and Rural Chartered Financial Planner, Stuart Coombe – 22/05/20

COVID-19 & Furnished Holiday Lets

Virtual Q&A for business owners with Jolyon Stonehouse & Stuart Grimster – 20/05/20

‘Virtual Breakfast’ Q&A with Head of Rural, Andrew Vickery and Rural Tax Adviser, Catherine Vickery – 15/05/20

Virtual Q&A for business owners with Phil Mills and Mark Neath – 13/05/20

Virtual Q&A for business owners with Phil Mills and Mark Neath – 06/05/20

‘Virtual Breakfast’ Q&A with Director and Rural Accountant, Neil Cox – 01/05/20

‘Virtual Breakfast’ Q&A with Head of Rural, Andrew Vickery and Rural Tax Adviser, Catherine Vickery – 24/04/20

‘Virtual Breakfast’ Q&A with Rural Tax Adviser, Catherine Vickery & Rural Accountant, Neil Cox – 02/10/20

Financial planning guide for farmers – 21/08/20

Demystifying Research & Development (R&D) tax relief for agriculture – 24/07/20

Later Life Webinar with our SOLLA accredited financial planners – 08/07/20

‘Virtual Breakfast’ Q&A with Director & Rural Adviser, Paul Neate & Rural Tax Adviser, Catherine Vickery – 10/07/20

Implications for owner-managers of the government’s new flexi-furlough scheme – 01/07/20

‘Virtual Breakfast’ Q&A with Head of Rural, Andrew Vickery and guest panellist Victoria Read – 26/06/20

COVID-19 planning opportunities for owner-managers – 18/06/20

‘Virtual Breakfast’ Q&A with Rural Accountant, Neil Cox and Chartered Financial Planner, Julia Banwell – 12/06/20

‘Virtual Breakfast’ Q&A with Rural Accountant, Richard Haines and Rural Tax Adviser, Catherine Vickery – 05/06/20

Food & Drink Webinar with Jolyon Stonehouse & Phil Mills – 03/06/20

‘Virtual Breakfast’ Q&A with Director and Rural Accountant, Paul Neate and Rural Chartered Financial Planner, Stuart Coombe – 22/05/20

COVID-19 & Furnished Holiday Lets

Virtual Q&A for business owners with Jolyon Stonehouse & Stuart Grimster – 20/05/20

‘Virtual Breakfast’ Q&A with Head of Rural, Andrew Vickery and Rural Tax Adviser, Catherine Vickery – 15/05/20

Virtual Q&A for business owners with Phil Mills and Mark Neath – 13/05/20

Virtual Q&A for business owners with Phil Mills and Mark Neath – 06/05/20

‘Virtual Breakfast’ Q&A with Director and Rural Accountant, Neil Cox – 01/05/20

‘Virtual Breakfast’ Q&A with Head of Rural, Andrew Vickery and Rural Tax Adviser, Catherine Vickery – 24/04/20

Implications for owner-managers of the government’s new flexi-furlough scheme – 01/07/20

COVID-19 planning opportunities for owner-managers – 18/06/20

Virtual Q&A for business owners with Jolyon Stonehouse & Stuart Grimster – 20/05/20

Virtual Q&A for business owners with Phil Mills and Mark Neath – 13/05/20

Virtual Q&A for business owners with Phil Mills and Mark Neath – 06/05/20

Later Life Webinar with our SOLLA accredited financial planners – 08/07/20

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