The COVID-19 pandemic has not only had an immediate impact on our lives and livelihoods, but predictions are that it will have long term effect causing significant economic challenges for society and businesses, globally. In such an environment what does the post COVID-19 business environment in the UK specifically, look like? 

The lockdown that most countries implemented in March this year, went a long way to reducing the curve of the global pandemic, minimising the strain on healthcare workers, and reducing the loss of lives. However, the lockdown did and is causing havoc on the daily lives of people and on businesses, which form the economic backbone of modern society. 

 

In this current situation, simply trying to patch up the economy may not work. It may help with providing immediate relief, however, with talk of the possibility of a ‘second wave of the pandemic’, it may instead be wiser to rethink our whole business models and help businesses adapt to a new norm in order to survive in the long-term. Regulatory frameworks which govern businesses too will have to be adjusted to accommodate the necessary changes. 

Taking the current situation and the immediate future into consideration it would be wise to plan for an alternative business module. Consider continuing work from home options and depending on the size of your operation a reduced customer demand, to ensure a smooth workflow. If it is more financially viable to allow your employees to work from home, then consider doing so to cut costs and to provide your employees with job security. Not having to pay overhead costs for office space and miscellaneous office expenses go a long way to providing your company with financial savings. 

 

Another option to consider is the furlough scheme that the government is providing, which will assist with funding your employees while helping you protect your business as well. Discuss with your company accountant for self-assessment advice and ensure that you are using all the allowances currently available to minimise your tax liability. Also, ask your accountant for a clear picture of your budget and cash flows and to create a realistic projection for the immediate future. 

Building on the above point, as most places slowly come out of complete lockdown, do not be in a hurry to go back to your old ways of doing business. Adapting to change is essential these days for a business to survive, so let employees continue to work from home, with flexible work hours, find new ways to market your business and goods and start looking for alternate additions to add to your current business setup. Basically, focus on long term changes and plans and not actions that only create immediate short term relief. 

The government is working to help businesses get back on track and regularly introduces initiatives and schemes to help businesses with financial aid to stay afloat. Keep watch for Government announcements on the official website regarding these aids and find out if your business is eligible for any. 

This is a good time to be in touch with your company accountant to work out a business plan to tackle the up coming months. Further, your accountant will be able to best advice and assist you on how to make use of the Government initiatives and aids. 

 

Look for a good accounting service in your area if you do not already have one, as it will provide you with valuable insight, tax advice and help your business negotiate the post COVID-19 business environment.