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Plan now to avoid a Covid-19 finance repayments crisis

P R E S S R E L E A S E

Ref: HWPR110 Date: 9th September 2020

Plan now to avoid a Covid-19 finance repayments crisis

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Howards Chartered Certified Accountants is concerned that businesses may struggle to make loan repayments and pay deferred tax and VAT unless they have a plan to meet their obligations.

The Stafford-based firm says that managing cashflow is key to running a successful business operation, especially during a recession.

Clive Boult, accounts team manager at Howards, says: "The next few months look set to be very challenging and businesses that don't prepare well could easily run into financial difficulties.

"If you're struggling to meet payment deadlines take action promptly. Keep communicating and work with lenders, HM Revenue & Customs and your accountant or financial adviser to draw up a realistic payment plan."

Businesses receiving support through a Bounce Back Loan, the Coronavirus Business Interruption Loan Scheme or regional council finance package should document when repayments are due and establish a regular, manageable repayments pattern. It is also important to note dates to file VAT returns and when to pay tax, since late payment will likely trigger a penalty charge.

Several tax deadlines fall on 31 March 2021. These include deferred VAT payments due between March 20 andJune 30, the second tax payment on account for 2019/20 and the first payment on account for 2020/21. Some people could face an adjustment to the second payment along with a balancing payment for 2019/20.

Building up a cash reserve makes sense as it will provide the funds to pay loans and tax bills whilst also bringing business owners extra peace mind.

Further information on how to avoid a Covid-19 repayments crisis is available at: https://www.howardsca.co.uk/covid-19-finance-repayments-avoid-a-crisis/

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Caption: Clive Boult, accounts team manager at Howards Chartered Certified Accountants, which is helping businesses to plan to meet their financial obligations.

About Howards

Howards was founded in 2005 following the merger of Barrington's and Wood & Co, two well-established and successful Stafford firms of accountants. The combined experience and areas of individual expertise that the company now enjoys has been passed on to its clients, who all benefit from Howards' deeper knowledge base and wider range of professional services. The senior team comprises managing director Matt Bailey, director and commercial and taxation specialist Ryan Hudson, office manager and group company secretary Joanne Austin, senior managers Nick Archer and Darren Roberts and accounts team managers Clive Boult, Rachael Wilson, Joe Dimambro and Chris Glue.

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