Getting the basics sorted out

Last week, I had some interesting questions with two of my clients. One said that they were putting me on hold as they didn't have enough work for me due to coronavirus and another said they were so glad they were working with me as they need to plan for the lost of income due to the events side of their business.

Now is the time to know your numbers. Look at the following:-

• Expenses - annual or monthly ones. Can you stop any of these if needed?
  Revenue - talk to your clients about what their expectations are and work with them as much as possible to find a good solution, rather than waiting for them to cancel.
• Cash - do you know how long your cash will last for?
• Get a breakeven number (where revenue equals costs) so you know what income you need to run your business.
• Invoice promptly at all times, but especially at the moment, and shorten your payment terms where you can. Chase those debts soon after they are due as the financial position of companies is changing all the time.
• Keep a note of all those things that you are paying due to coronavirus so that you can easily separate them as exceptional when things are back to normal. It will help to know when looking back that this wasn't business as usual, and if there is further assistance from the government, it will mean you will be able to provide evidence easily.

Remember, there is some help and assistance out there, although at the time of writing not much for the self employed. There is universal credit and statutory sick pay available.

Self assessment payments have been deferred until January, so no payments will be required in July, but it is important to note that these will still be due. VAT has also been deferred until the end of June, so no VAT due in that time will be payable, but will still need paying at the end of June.

If you employ people there is a job retention scheme to pay 80% of your employees salary instead of making them redundant at this time.

There are business interruption loans available and business rates for retail, hospitality and leisure.

This is obviously ever changing situation, but please keep looking out for the things that you can do. Martin Lewis, the money saving expert, has a great website, and he is saying that self employed people will be next to be helped by the government. His guides are great as to the help you can get and what your rights are. 

The government website is also quite clear, unusually! 

Take a mortgage holiday if you can and need to, look at all your personal outgoings and stop any you don't need (you should do this periodically anyway, not just now).

Make sure you are making use of all the benefits available at the moment.

Take care, stay safe and well.