Chancellor announced business support measures for the Coronavirus crisis.

18th March 2020.

James Salmon, Operations Director.

Chancellor announces business support measures

Chancellor Rishi Sunak has unveiled £330bn worth of support designed to help businesses survive the coronavirus crisis.

The business support measures on top of measures set out in his Budget last week that he announced include

  • businesses will have access to Government-backed guaranteed loans at “attractive rates”, with a £330bn pot available to firms which need money to pay rent, suppliers or staff or purchase stock.
  • A new lending facility launched with the Bank of England will support larger companies, while SMEs will be able to borrow up to £5m with no interest due in first six months – up from the £1.2m announced in the Budget.
  • Mr Sunak also announced that retail, leisure and hospitality companies will be exempt from business rates for a whole year, while firms with a rateable value of less than £51,000 will be given a cash grant of £25,000.
  • The Chancellor also said banks will provide a three-month mortgage holiday for those who need it.
  • Mr Sunak also said ministers are set to discuss a potential support package for airlines and airports.
  • He added that ministers will work with trade unions and the industry to develop a “bold and ambitious” package of “employment support”.

Chris Sanger at EY has urged Mr Sunak to set out more details on support for staff as soon as possible, saying: “This will be essential if jobs are to be maintained over the next few months.”

Britain has also announced a major step-up in its measures to contain the coronavirus. Having lagged behind other European countries in introducing restrictions, Boris Johnson, the prime minister, has now urged everyone to work from home and avoid restaurants, theatres and pubs.

Tax support among Sunak’s fresh measures

Among measures detailed by Chancellor Rishi Sunak that will seek to ease the impact of the coronavirus, it has been announced that the “time to pay” initiative has been extended.

Such agreements, which are negotiated between SMEs and the Treasury, allow firms to have debt collection suspended when they cannot afford their tax bill.

It was also announced that HMRC will waive the 3.5% annual interest on deferred tax payments, with the Telegraph saying this will enable firms to “push their tax obligations further down the line”.

The Revenue says matters up for negotiation as the coronavirus crisis continues include “agreeing an instalment arrangement, suspending debt collection proceedings and cancelling penalties and interest where you have administrative difficulties contacting or paying HMRC immediately


IR35 reforms delayed for a year

Chief treasury secretary Steve Barclay has announced that the IR35 tax reforms, which will clamp down on tax avoidance by targeting contractors, will be pushed back by one year to April 2021 as the Treasury looks to protect the economy from the coronavirus outbreak.

The announcement means that the measures, which were confirmed in the Budget last week, will no longer be rolled out next month.

Stephen Barclay, chief secretary to the Treasury, said the suspension of the changes to off-payroll working rules is “in response to the ongoing spread of Covid-19 to help businesses and individuals”, noting that the move is “a deferral not a cancellation and the Government remains committed to reintroducing this policy.”

Brexit trade talks are cancelled

The negotiations between Britain and the European Union that were due to restart today, but were put on hold by the covid-19 crisis.

Britain had been determined to push through negotiations in order to reach the deadline of 31st December 2020 and  a British government spokeswoman said both sides were “fully committed to the negotiations”.

But the freeze of talks will increase expectations that Boris Johnson will have to  ask for an extension.

The two parties remain very far apart

The European Commission has produced a draft treaty setting outg the EU’s hardline stance that a free-trade agreement must include a level playing-field on regulation, and access to British fishing waters.

The EU also rejects the British demand for early agreement on financial services.

The British government inturn plans to set out its own draft treaty, based entirely on EU deals with other countries, that would impose no such special demands on Britain.

Most firms not protected by insurance

The Association of British Insurers (ABI) has warned that many of the firms set to lose sales or shut down because of the coronavirus pandemic are not protected by their insurance, saying policies covering closures in the wake of such an outbreak are rare.

In a letter to MPs on the Business, Energy and Industrial Strategy Select Committee, the ABI said standard policies excluded cover for such losses and that few businesses paid the extra to include such cover.

Martin McTague, head of policy at the Federation of Small Businesses, said it was his experience that few SMEs bought insurance to cover business interruptions, commenting: “Most of them think very short-term.”


Market rout may have hit retirement plans

Barry O’Dwyer, chief executive of Royal London, says people who have too much of their pension invested in shares may have to postpone their retirement, saying the market rout brought about by the coronavirus could mean some people approaching retirement age who moved to a riskier plan or put pension savings into the stock market for a steeper return may no longer have enough money left to live off.

He told BBC Radio 4’s Today: “Most financial advisers would have moved their customers out of equities. If you’re in a workplace pension, your provider would have moved you out of equities into bonds as you came towards retirement,” adding: “So ‘having too much money in equities’ shouldn’t have happened if you stuck with the default fund or have followed financial advice.”

Do you sell on credit?

With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.

Those customers will look for the easiest option  to boost their cash-flow. Don’t let it be you.

You can’t just assume your customers can and will pay you eventually, no matter how big their name is.

It is essential to have credit management systems in place to monitor and check your customers credit worthiness.

It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply on credit, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

You might be hesitant about contacting a debt collection agency. What are they going to be like?

Can they help your particular type of business?

There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.

Debt collection agencies are not all alike.

Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and  has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!

At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.

The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.

We are polite, firm and efficient when it comes to recovering outstanding debt.

“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has  helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire

“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections


Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Yes, CPA can help you boost your business cash-flow.

Don’t let your bankers control you, contact CPA today.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

The “Why” of the late payment culture.

New PM should walk the walk and back small firms over late payments

Paying late is “crack cocaine” to big business.

Late payment culture risks “spiraling out of control”

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

Do you realise you could be sitting on a fortune?

Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.

If you sold B2B on credit then there may be a hidden source of capital you can call on.

If you fancy an bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.

Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.

We can help you uncover the pile of gold, you didn’t even know you were sitting on.

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.

Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.

You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.

That compensation could provide the cash boost your business needed.

But don’t delay, that compensation evaporates if not claimed within six years of the late payment.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.

Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.

CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.

The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit.  You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping business owners  who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

Those former clients who regularly paid you late can finally be made to pay.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections

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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections