MNI COVID 19 Factsheet- Managing Business Finance, Tax, Rates and Insurance
COVID-19: Managing business finance, tax, rates and insurance
Are there finance options available from my bank?
Manufacturing NI will try to keep you updated as each bank announces their own policies. The Bank of England has recently cut interest rates from 0.75% to 0.25% in addition to making billions of pounds available to banks across the UK to help small businesses during this crisis. Some banks will agree to mortgage holidays for commercial and residential mortgages and consider new overdraft facilities.
Is there a helpline that I can call for Government support?
Where possible, speak to your Invest NI Client Executive who can guide you. The Invest Northern Ireland phone number is 0800 181 4422 and lines are open Monday to Friday, 8.30am – 5pm.
Can I delay my tax payments as a result of COVID-19?
HMRC has set up a dedicated phoneline for Coronavirus related challenges, to help small businesses unable to pay their taxes on time (Corporation tax, income tax, PAYE, VAT) with options to defer or delay payment. Known as ‘Time To Pay’, this is a vital service. Around 2,000 staff work on their helpline, and we have already had small businesses report that they have waited for less than 2 minutes before speaking to someone. The helpline number is 0800 015 9559 and lines are open Monday to Friday, 8am to 8pm and on Saturday, 8am to 4pm.
HMRC will also waive late payment penalties and interest, but you should make every effort to contact HMRC immediately.
What can I do to preserve my working capital/Cash management
Covid-19 related business disruption is highly likely to cause significant strain on cash generation and conversion.
Organisations will need to preserve and drive out cash flows, optimise working capital and enhance visibility over the level and timing of funding requirements.
This will involve developing and refining robust cash flows models and implementing rapid operational improvements, such as:
- Analysing immediate and near-term funding requirements
- Stabilising cash flow and buying time for negotiation with stakeholders
- Driving improvements in cash collection
- Prioritising cash outflows
- Identifying cash generation opportunities
- Reviewing working capital cycles and reducing the working capital requirements of the business
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