Protecting cash flow - tax payments
It is unlikely that our businesses will be unaffected by the inevitable slow-down in economic activity as the Coronavirus outbreak starts to bite.
Maintaining a strict control over your personal and business cash-flow is going to be a key decider in surviving this process.
A major expenditure item is taxation whether that be VAT, PAYE/NIC, self-assessed liabilities or Corporation Tax.
We suggest that all businesses rework their cash-flow forecasts based on the revised trading outlook post COVID-19. Be realistic and tend towards less optimistic scenarios. If the outcome requires support from your bank you may be eligible for a government backed Business Interruption Loan – the government will guarantee 80% of the loan – make your application now based on your revised cash-flow.
And finally, all businesses and self-employed people may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. You can contact HMRC’s new dedicated COVID-19 helpline for advice and support. To ensure ongoing support, HMRC has made a further 2,000 experienced call handlers available to support firms and individuals when needed. For Time to Pay support if you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
And please call us if you need help reworking your cash-flow forecasts, negotiating loans with your bank or presenting tax payment deferment schemes to HMRC.