What does the Coronavirus mean for your business?

Friday, March 27, 2020
Posted By
Kiran Kaur

The impact on Coronavirus within the UK has been truly catastrophic, with businesses seeing a sharp decline in sales, as we enter a period of great uncertainty. Although no one really knows how many people will be affected, it is certain that the effect on the economy has already saw a crash.

However, the Creative Ideaz message to you is this; COVID-19 is a temporary hurdle. Though a devastating cashflow problem, the opportunity when demand starts to rise again, which it will, should not be ignored.

The natural instinct is to think that this the end of your business. But, statistics show that this unfortunate crisis will allow you to get one step ahead and level the playing field with your competitors.

  • The food, finance, healthcare and media industry are showing a high growth in demand, which may open significant opportunity.
  • SEO has become the long-term strategy which will allow you to get to the top of Google, when demand starts to pick up for your sector.
  • Those bidding on PPC may stop as a result of budget cuts. Take advantage of this to be at the top of Google, when your competitors disappear
  • If operating within the service sector, it may be worthwhile to plan promotions to entice users to book, for when your business is back open, to still receive cash

In addition to this, there are many government measures announced to alleviate financial pressures for your business.

1. Grants of £10,000 for businesses claiming small business rates relief.
The local authority will contact the affected businesses directly if they are entitled to the grant provided, they claim small business rates relief.

2. Coronavirus job retention scheme.
The government will reimburse 80% of furloughed workers wage costs up to a maximum of £2,500 per month for three months subject to review. The government will set up an online portal system that will allow employers to submit information about employees that have been furloughed. This will be administered through the PAYE system so if you are self-employed and take dividends then you will not be entitled to make a claim under this scheme. However, there have been calls for additional support for self-employed individuals and there may be further announcements by the government shortly.

3. Deferment of VAT for the current VAT quarter until the end of June 2020.
The tax payers will be given until the end of 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period.

4. If you are self-employed Income Tax payments due in July 2020 under the Self-Assessment System will be deferred to January 2021.

5. Business Rates holiday for retail, hospitality and leisure businesses.
The local authority will contact the relevant businesses entitled to the relief shortly.

6. Cash grants for retail, hospitality and leisure businesses of up to £25,000.
The amount of grant you will receive will depend on the rateable value of the property. This grant will be available to businesses such as restaurants, cafes, delinking establishments etc.

7. Business Loans.
The government will provide temporary business interruption loan scheme administered by the British Business Bank. This will primarily support small and medium size businesses to access bank lending and overdrafts. The businesses can access the first 12 months of that finance interest free as the government will cover the first 12 months of interest payments.

Put simply, the coronavirus pandemic is not permanent. In response, we urge businesses to look towards the opportunities available within your sector, to get one step ahead of competitors who may not be looking for the same gap, once demand picks up. If you prepare when others aren’t, expect to see your business thrive once sales start to increase.

Kiran Kaur

Customer Service Manager @ Creative Ideaz