COVID-19 19 Business Surv rvival Toolkit Tourism & - PowerPoint PPT Presentation

COVID-19 19 Business Surv rvival Toolkit Tourism & Hospitality Allerdale Borough Council June -20

About Lamont Pridmore • Business Advisers, Chartered Accountants and Tax Advisers • Hospitality and Tourism Specialists • Strategic Partner to Cumbria Tourism Contact us: lamontpridmore.co.uk 0800 234 6978 info@lamontpridmore.co.uk

Coronavirus Support and Information • Visit our COVID-19 Business Support Hub https://www.lamontpridmore.co.uk/about-us/covid-19-business- support-hub/ • Download our Business Survival Toolkit https://www.lamontpridmore.co.uk/pdf/Coronavirus-Business- Survival-Toolkit.pdf

Surviving This Crisis and Emerging from Lockdown Tourism and hospitality businesses must prepare for: • Potential reopening from 4 th July • Possible further periods of disruption due to localised lockdowns • Re-opening will have to be managed in line with social distancing guidelines, and/or ongoing travel restrictions • Must consider how to manage the safety of staff and customers • Understanding the impact of re-opening at reduced capacity, occupancy and revenue levels

Practical Planning for Future Opening • Undertake a COVID-19 risk assessment in order to keep staff & customers safe https://www.hse.gov.uk/simple-health-safety/risk/index.htm • Carry out the necessary protection measures identified ahead of opening • Update policies/procedures to manage ongoing social distancing measures and health & safety e.g. deep cleaning strategy, reported cases of COVID-19 https://www.gov.uk/government/publications/covid-19-decontamination-in-non-healthcare- settings • Plan for additional stock of PPE and cleaning supplies • Keep an eye on the experiences of other countries with re-opening in your sector • Review your future bookings, contractual terms and cancellation policies • Review your insurance and protection policies • Explore new income stream opportunities: - new products/services that could be developed quickly - other ways of getting your product or service to customers

Financial Planning for Future Opening What you should prepare now for the next 6-12 months: • Scenario planning for profitability levels at different occupancy/revenue levels • Assess the additional costs of cleaning, supplies, safety measures and PPE • Prepare a financial plan to include: - Sales targets - Marketing strategy and plan - Revenue expenditure budget including staffing strategy - Capital expenditure budget - Personal expenditure budget - Funding strategy and plan - Tax plan • Develop a disaster recovery plan for next time

Have you reduced staffing costs? • The Co Coronavirus Job Job Reten ention Sch cheme provides Government Grants of 80% of salary of PAYE employees up to a maximum of £2,500 per month, who would otherwise be laid off are designated ‘furloughed’. • New Employees to the CJRS must be furloughed by 10 th June. • Flexible, part-time working whilst furloughed permitted from 1 st July. • From 1st August employers must contribute 5% of the costs, increasing to 10% in September and 20% in October. The scheme ends 31st October.

• Before 1 st September, consider matching future staffing levels to predicted income levels in line with social distancing rules and reduced business capacity: - Review Contracts of Employment - Consider varying terms and conditions such as negotiating amended hours, salary reductions or unpaid leave with staff - Ask staff to take any holidays now - Check notice periods needed to put staff on short time working or to make them redundant and any costs this would involve. (More information https://www.gov.uk/staff-redundant/layoffs-and-shorttime-working) - Consider laying off staff (More information https://www.gov.uk/lay-offs-short-timeworking) • Make sure you follow the correct processes when carrying out any of these changes and take account of any contractual and legal requirements.

You Should Have Already Undertaken the following business survival activities

Have you already? • Deferred your next quarter VAT Payment by cancelling your HMRC direct debit (Liabilities must be settled by March 2021) • Income Tax payments due on 31 July 2020 will be deferred until 31 January 2021 (automatic without the need to apply) • Applied for Universal Credit for the self employed if applicable (at the same rate as statutory sick pay). • Received 100% Business Rate Discount for retail, hospitality and leisure businesses for the coming year. • Received your £25,000 grant per property (for retail, hospitality and leisure businesses operating from smaller premises with a rateable value between £15,000 and £51,000). OR • Received a Small business grant of £10,000 for those businesses eligible for small business rate relief or rural rate relief. OR • Applied for the Allerdale Borough Council Discretionary Grant of up to £10,000 for businesses paying Council Tax or those ineligible for other grants

Have you already? • Applied for a 6-month payment holiday if you are a Mortgage borrower or Tenant. • Applied to defer bank loan capital repayments on existing borrowings for the next 6 months. • Claimed on your insurance if you have cover for pandemics or government-ordered closures (but policies differ significantly regarding the cover offered) . • Received two weeks SSP refund per employee relating to self-isolation as a result of the coronavirus amounting to £94 per week. • Asked HMRC for Time to Pay: HMRC will look favourably on agreeing payment plans for VAT, PAYE/NIC, CIS, Machine Gaming Duty, Income Tax and Corporation Tax liabilities. (Call the HMRC dedicated help line on 0800 0159 559.)

Have you also? • Cancelled any non-essential expenditure - Business and private, revenue and capital - Reducing costs should have been done within days of the crisis unfolding • Discussed payment plans with suppliers • Considered employment for a short while to increase income (supermarkets, delivery drivers etc) • Claimed any benefits that may be due to you

Available Support

Are You Self-Employed? • The Se Self-Employed In Income Su Support Sc Scheme (SEISS) will pay self- employed individuals an amount equivalent to up to 80% of their average annual trading projects up to £50,000, capped at £2,500 per month, to cover at least 3 months from 1 st March 2020. • See our flow chart to see if you’re eligible. • If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020. • The scheme is being extended. Claim for a second and final grant can be made in August 2020.

You Could Also: • Consider changing your financial year end to relieve the financial losses as early as possible for tax purposes. Advice must be taken from your accountant/financial adviser as this can be a complicated calculation. • To maximise your cash flow, a claim should be submitted to reduce the tax payment due to 31 July 2020 to nil and defer until 31 January 2021. Consult your accountant/financial adviser on the best course of action.

Sources Of Funding Cor oronavirus Busi siness s In Interruption Lo Loan Sc Scheme (C (CBILS) • came into effect from Monday 6 April 2020 • provides SMEs with turnovers of up to £45 million access to facilities of between £1,000 and £5 million interest-free for 12 months • backed by an 80 per cent guarantee from the Government. • maximum length of the facility is: - up to 3 years for overdrafts and invoice finance facilities - up to 6 years, for loans and asset finance facilities

Sources Of Funding Bou ounce Bac ack Lo Loans Sc Scheme (B (BBLS) for small businesses • Small businesses can borrow up to 25 per cent of their turnover, from £2,000 up to a maximum of £50,000. • 100% backed by a Government guarantee. • Will offer an interest-free period for 12 months. • Importantly, firms applying will only have to prove that they were viable in the past before the crisis, not that they will remain viable after the crisis.

Sources Of Funding • COVID-19 Cor orporate Fin Financin ing Facil ilit ity for those larger businesses ‘making a material contribution to the UK economy’ administered through the Bank of England.

Questions If you have any further questions or concerns, please email them to: Graham La Lamont Tourism & Hospitality Specialist | Lamont Pridmore Graham@lamontpridmore.co.uk