Government Economic Support during Cornavirus COVID-19
This article is primarily aimed at Clients of NCompass and I do not want to sound like I am whinging. Sorry just had to get this statement underway as we live through these extraordinary times
If I have more time I’d re-design my website, I’ll start with that statement as I know my website is not all that great, certainly better than what it was a few years ago, but it could do with an overhaul.
When Coronavirus reared its troublesome head I did think, crikey everything is falling apart, I’ll lose so much business that I will be redesigning my own website.
But mine is not a business of this nature. On SEO I’ve always tried to avoid explaining ‘what we do’ and concentrate on the results we achieve, why? because it’s like a piece of string – there is no end to ‘what-we-do’ – it’s continuous.
And so it is true of this period, whether I am talking through ideas with a client, or reviewing Stats report, or even should I be lucky enough designing a website – it’s endless…. and so it is true of my work, marketing and websites in general, as soon as one task is completed it’s straight onto the next one.
So – good for you, clients – thank you – you’ve kept me and my team super busy all through this period. Wonderful.
Government Economic Support
Now, to repay you, I thought I’d share my thoughts on the Government economic support at this point in time, please feel free to comment as you may or may not agree.
- Grants – we do not qualify for this in any way.
It applies to the Retail, Hospitality and Leisure industries… tragically not us. Even though we support and work for a significant number of clients within these industries. - Deferring Tax Payments – it all has to be paid in the end
We can delay VAT, PAYE and even Corporation Tax, but it all has to be paid in the end… equally, should our revenue and employees shrink – so our liabilities in these areas will shrink. So, we are probably better off paying on time as normal. - Low-interest Loans – only if we risk our homes
The banks have genuinely let business down here, but who’s surprised. I can get a loan, but what for, a new computer? our overhead in the Website Business are very low, so why would I risk my home for a low-interest loan, and by the way all loans have an interest. - Sick-pay – SSP – there was much talk about giving £94 a week to our employees
But only if they provided a doctors note. My understanding of SSP is that it’s we the employers that pay it and it cannot be reclaimed from the government and is only available if employees think they have actually got Coronavirus. Also, it’s still not reclaimable on HMRC. - Universal Tax Credit and Welfare – not applicable to a business
Something has gone up by £1000 somewhere… but this was a failing system, to begin with, just now a lot more complicated… Should we lose staff over their ability to claim Universal Tax Credits? i.e. if they have families to support and homes at risk… that’s a heck of a responsibility for an Employer when choosing who is to be made redundant. Because of this only help, a little, if employees lose their jobs. - Mortgage Holidays – it still has to be paid
Can’t really work this one out… I think I’d rather pay a bit of short term overdraft fees than extend my mortgage into my retirement. There is nothing new here, Mortgage lenders already offered ‘holidays’ anyway… so I don’t count this as government support. - Self-Employed – obviously we don’t qualify
The purpose of going self-employed, we have plenty of freelancers working for us, is to minimise your profits and pay a bit less tax… That’s why you go free-lance. It’s not avoiding or evading tax – it’s common sense. You mobile, computer, bit of petrol all can be attributed against income… Thus you reduce your ‘declared’ profits and hey ho after years of paying taxes… the Government will give you 80% of your £200 profit you made last year. Thanks. - Furlough – the biggie
The catch here is quite simple… anyone who is furloughed cannot work, for anyone it would seem. Thanks for the help… my revenue is down 40%, I’ve lost clients left right and centre… I need to cut costs dramatically… OK – I can lose some staff… I’ll furlough them to ease the financial pressure… but guess what – right at the point in time I need them here, bending over backwards to keep my business alive… The government tells me they cannot work at all. Period. I mean it’s not logical. Oh and to boot, if I feel like it, I can still pay them 20% of their salary (no pressure) – for doing precisely nothing. In fact the opposite – when I need that password – they are not allowed to tell me. No work.
Right – that my list of Government Economic Support as I see it… basically a mixture of you don’t qualify or you’ll have to repay it back later anyway… in short, I wanred you at the start this might sound like a whinge, but is it?
I want to finish with the more terrifying part of this equation… All this Government Economic Support we’re getting… is costing Billions.. when they announced something would cost £330billion – they meant it… it will… and it will have to be paid back…
The debts that are being created are real and we will all be paying them back for years to come.
Any Good News
I have to be honest not a lot… The internet has proved itself as a robust and good communicator during a Lockdown, websites are definitely pulling their weight and businesses utilising them are doing well, there’s no question, but it’s only going to increase a companies reliance on technology and a further demise of Bricks and Morter, there will be a fallout.
We’re battling on, we’ve taken a decent puch, but NCompass is now firmly up and running and fighting back, your website is I hope in safe hands. Not that the government has particularly supported us.
But I am not whinging, promise.