WTF is going on?

Right now everything is changing so quickly that we're constantly in catch up mode about what best practice is. The best thing you can do is be adaptable and put a pause on any big expenditure.

We've detailed some information that we've been gathering into one place, with our commentary, that you can use to make the best out of this situation.

<aside> 💡 UKHospitality is the trade body that represents a lot of food businesses. They are the people to lobby government and are doing an amazing job. They have also got a mini-Coronavirus website here - https://www.ukhospitality.org.uk/page/coronavirus

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Financial Advice

<aside> 💷 CASH IS KING. Do whatever you can to preserve cash.

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Prioritise in this order

Unfortunately you're going to have to make some tough decisions, ultimately if you're sitting on a bit of cash you're in a much stronger position than if you're heavily indebted. We suggest using this a pretty good indicator of what you should be paying if you can.

1. Your business

   The priority is to keep this going. All the stuff below is a product of your business existing, so you need to keep your business afloat.

2. Your staff

   Do what you can to protect your staff, it might mean a pay cut, it might mean having to make some redundancies. Once we get out of this you'll need people to be able to work again, so if you can keep them do.

3. Your suppliers

   If you work with any small suppliers they will be facing the same issues that you are. If you have cash that you can support them with, then do spread it around. As above, once we get out of this you'll need them, and people remember how you respond in a crisis.

4. Everything else

   Anything non-essential can be left behind.

Government Support

Coronavirus (COVID-19) guidance for employees, employers and businesses

• Loans
  • A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses with a turnover of no more than £41 million to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees.
  • So having looked further into this, you'll need to personally guarantee any of these loans... Obviously as you don't know what's going to happen putting your assets on the line for your business might not be the wisest decision.
  • If you were rejected for a loan for your business recently, it's unlikely that you'll be able to get one of these.
  • Basically they are being provided by people you would expect, your high street banks and other loan companies. There isn't some big government bank that you can apply to.
  • Overall for street food businesses: 👎, I can't think of any traders that would take this
• Grants
  • There will be a £10,000 cash grant to 700,000 of our smallest businesses, delivered by Local Authorities. This applies to any business who currently qualify for Small Business Rates Relief. This is if your business rates are below £15,000.
    • Your local authority apparently will contact you. Should be up and running by the start of April.
    • Overall for street food businesses: 👍, if you pay business rates
  • This grant increases up to a £25,000 grant if you have a rateable value of up to £51,000 a year.
    • As above, your local authority apparently will contact you.
    • Overall for street food businesses: 👍, if you pay business rates
• VAT
  • If you were scheduled to pay VAT between March & June then you won't have to during that period...
  • BUT BE WARNED, it's not cancelling VAT, it's deferring it, this ain't free money! You'll have to pay what you owe by the 5th of April 2021.
  • Overall for street food businesses: 🤝, as in it's a good thing, but not amazing
• Self-Assessment Income Tax
  • If you're having to submit a self-assessment form and you were to pay tax in July, this will be moved to January 2021.
  • This has already happened, no need to do anything.