
As we expect the coming year/s will be tough for the business. It is really crucial that businesses should plan their activities very carefully and prudently.
If you have managed to retain profits in your business this fat-on-the-bone will help to see you through loss making periods as we endeavor to emerge from COVID disruption, hopefully, later this year.
How long these reserves may last depends on how effectively you manage the process.
If you are impacted by COVID disruption, you will need to ensure that you avail yourself of any Government funded grants via your local authority and wage costs can be 80% covered by the extended furlough scheme. But these will not cover all your fixed costs.
Accordingly, planning is absolutely vital.
You need to figure what your short-term prospects for trading are likely to be and then quantify the minimum level of costs that you will need to carry in order to meet:
Existing fixed commitments, rent for example, and
Other variable costs to deliver any future trade.
If these calculations reveal that you will be trading at a loss for an extended period the only way your business can survive is if:
Your retained profits and personal capital introduced cover these losses, and or
If reserves are exhausted, are you prepared to borrow funds – Government bounce-back loans for example – to fund the excess losses?
We are helping business in devising a business strategy that will ensure that thee business survive during this crises times.
Feel free to contact us to book an appointment.
Hair and beauty businesses often use flexible working models. A salon may have employees, chair renters, mobile stylists, freelance beauty...
A landmark ruling by the UK Supreme Court in June 2026 has ended a long-running tax dispute involving Alex Gerko...
Founders planning to sell their businesses increasingly need BADR tax advice for company sales as HMRC expands its review of...
Letting agents and landlord bodies are pressing the government to make EPC tax relief for landlords available as private landlords...
British retailers are calling on the government to accelerate plans to close the loophole for small parcel import taxes, which...
A system designed to count days rather than passports The European Union’s new Entry/Exit System (EES) quietly changes how border...
Buying or selling a rental property can be one of the most financially rewarding moves a landlord makes, but it...
Capital Gains Tax for landlords is now a decisive factor in whether owners hold, sell, refinance or restructure property portfolios....
A recent Insolvency Service investigation exposed a £3 million insolvency fraud by former director Tariq Sarwar (59), who syphoned money...
Since the private school VAT change, effective 1 January 2025, private school tuition and boarding in the UK have been...