17 April 2020
The UK Government has already announced a number of generous, efficient measures to support individuals, businesses and the economy as a whole. However as we are now entering the implementation phase, we are seeing that some of the mechanics are not adequately functioning.
With just over 6,000 loans signed off in three weeks under the Coronavirus Business Interruption Loan Scheme, many financially-viable UK businesses are still unable to access the urgent financial support that they need to survive this crisis. Banks, which a decade ago were at the centre of a global crisis, now need to step up their game and accelerate their processes to deliver this much-needed financial relief to struggling businesses in their time of need.
Additionally, the Government should allow greater access to the Coronavirus Self-employed Income Support Scheme and Coronavirus Job Retention Scheme for SME business owners so they can get some much-needed financial support for themselves and their families. They should ensure that it truly reflects their earnings over the past three years by allowing them to have their dividends considered alongside their PAYE using the definition of ‘Close Company’ (five or fewer participators) in the Corporation Tax Act 2010.
Letting good businesses fail now will only slow down our country’s recovery.
Andrew Harding, FCMA, CGMA
Chief Executive — Management Accounting
The Chartered Institute of Management Accountants, part of the Association of International Certified Professional Accountants