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The mkiv Supra Owners Club

Furlough support for employers


rider

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I've been searching the Government and HMRC sites long and hard. for days, looking for information aimed at employers on how to administer and claim staff retention payments during the Coronavirus lockdown. I finally found a page on the Government website that was published at the end of last week. It does contain important eligability information so if anyone was like me, wondering htf to administer the government initiatives around the coronavirus retention programme then this could be what you are looking for. PM me if you wish a copy of the page link.

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Couple of reasons to be unhelpful really. I figured first up that there aren't many employers around the forum, there aren't many of anything, so the link would be pretty useless for most. Secondly the information from the web link may become outdated very quickly, superceded by events so what is potentially very useful information today could be misinformation in a weeks time.

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Every aspect of Government support is easily accessible from HMRC and gov.uk websites and they are promoting them on Facebook feeds too, a simple Google search identifies them in seconds. As an accountant and an employer I subscribe to a Government email service that sends update emails up to 100 times a day. Most are irrelevant to any one business or individual but you can pick and choose the ones you want to read.

 

The link is https://www.gov.uk/email-signup?link=/government/topical-events/coronavirus-covid-19-uk-government-response

 

The front page for access to all Government based coronavirus information, including the financial support, is https://www.gov.uk/coronavirus

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This is furloughing is proving difficult for my companies circumstances.

 

Say BA is down to 25% flights, for simplicity if they have 100 pilots 400 flight attendants then they can furlough 75 pilots and 300 flight attendants, carry on with the 25% business available and hugely reduce their wages bill which is a large fixed monthly cost for any business and is what the scheme is exactly designed to help support.

 

Say however you have a private jet company, perhaps 2 pilots and 2 flight attendants, if their business quarters then it becomes tricky as the furlough rules state the minimum you can furlough someone for is three solid weeks (during which time they can do zero work for the business). So the smaller business is potentially faced with the same drop in income but cannot legitimately claim any salary costs if the two pilots each only work 25% of the time. The company might be forced to self fund the normal wages or only pay the staff for the 25% work they do.

 

We are not in the airline industry but being small suffer from most employees having a specific skill set that's beginning to become required less, but that will be hard to not have at all for solid three week periods. If we all work part of the days/weeks due to the reduced need/lack of work then the company can claim nothing via the furlough scheme, despite the business effect (like the BA vs private jet company example above) being identical?

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As a side issue facing business owners we are finding our glorious customers are either delaying or witholding payments on our February invoices. If this is a general thing happening out there then the knock on effect of companies falling like dominoes will be rapid as they run out of cash while carrying overheads against no or reduced revenue. Anyone with lots of money could be facing good times ahead with lots of cheap businesses on the liquidation market. Anyone without lots of money, well that may be a slightly differnt outcome.

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Delaying/stalling is going to be a growing thing I think, if you pay all your suppliers and you get let down you could be one of the first to go, so people will be more nervous than normal and more likely than ever to wait for the cash in before they release the cash out.

 

Something like Carillion affected lots of other companies but now we all (bar a few obvious sectors) have the potential for multiple customers to withhold cash and even go down leaving at best a few pence in the pound (and it won't come quickly) for us.

 

Lots of nervousness and uncertainty, which in itself can be contagious (and I'm not helping am I!)

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  • 4 weeks later...
What do you do until June, all my income has now stopped from properties i own and rent out, luckily they

are paid for so no mortgages to worry about

 

I’ve been fortunate, all my tenants have paid in full since the lockdown, cause being self employed I’ve not received a penny Yet of the government.

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