Salisbury based Insolvency and Restructuring experts, JWS Business Recovery, are delighted to announce that Matt Reeds has joined their team to further strengthen their existing service offering.

Matt has been advising business owners and individuals alike on financial issues for over 20 years, and is also a qualified Insolvency Practitioner.

James Stares, the leader of the team of Insolvency Practitioners at JWS Business Recovery commented, “Matt brings a wealth of experience and a passion for problem solving to the team and has previously acted on a number of interesting and complex cases, including the sale of a brewery and its connected public houses, a complex investigation into an alleged property portfolio fraud and the bankruptcy estates of a number of retired high profile professional footballers”.

Matt recently presented his views on the Covid-19 pandemic and its effect on business recovery to the Weymouth and Portland Chamber of Commerce.

As part of his presentation, Matt reminded delegates that it was “easy to forget that 2020 started with storms “Ciara and Dennis” battering and flooding large parts of the United Kingdom, throw into the mix the fallout of provisionally leaving the European Union on 31 January 2020 and the economy was already somewhat uncertain. Then of course, in March 2020 the reality of Covid-19 struck the UK and the Country went into the first national lockdown. Almost a year on from this seismic event, many business owners and individuals remain concerned about what the future may hold.   

So in the current climate, how do directors, business owners and entrepreneurs navigate this “perfect storm” of circumstances? Now more than ever, it is crucial to review your financial performance, whether that be as a Company or as sole trader. Historical numbers have become less relevant and future forecasting has never held more importance. I believe that the production of management accounts is critical and I cannot recommend this enough.

As Insolvency experts, we regularly see those facing financial challenges focus on the immediate here and now, which, given the rapid changes to public Covid policies, is entirely understandable. But we will emerge from the public health anxiety in due course and business owners will need to evolve and adapt if they are to survive the financial impact many have suffered during the pandemic. Now is time to review your outgoings, reducing them where you can and look at where change could bring benefits to your business.

If, and I appreciate that it is a big if, you can afford it, now is the time to get your technology right. More sustained working from home practices are likely to stay with us in the future where it is practical to do so, and the benefits of having the correct technology in place has proved to be a winning formula for those businesses who have so far managed to weather this crisis.

Cash flow has always been a key tool for the survival of businesses during previous economic downturns, Covid has produced in many ways a unique set of circumstances for business owners to tackle, and whilst it is admirable how suppliers and customers have had patience and understanding with each other in recent months, the reality is that this will change and we return to some form of normality. This is where having the right technology in place could prove to be priceless in improving your cash flow.

Looking ahead, James Stares remains optimistic that the majority of business owners and individuals in difficulty will find solutions to deal with the issues thrown their way in the past year.

“Business owners often find ways to adapt and prosper no matter how dark things appear to be. Support and help will always be there, and nobody facing financial challenges should feel guilty about reaching out for help or think that these challenges are completely insurmountable. As a firm, we will listen with compassion and provide help and guidance to anyone facing financial challenges at this time."

In the recent Spring Budget the Chancellor announced the extension of the Furlough Scheme meaning that the Government will continue to pay 80% of employees’ usual wages for the hours not worked. Whilst this was no doubt welcome news to many businesses, for some it may be simply delaying the inevitable as they continue to kick the proverbial can down the road.

Furthermore, the VAT Deferral Payment Scheme was introduced which will allow businesses with deferred VAT to pay what they owe in smaller, interest free, monthly instalments. However, businesses will need to mindful of their ability to service any existing debt, as well as repaying any potential business interruption loans taken out during the pandemic.

Surprisingly the Chancellor did not announce a change to Business Asset Disposal Relief (“BADR”), although experts predict that this may well now happen in the Autumn Budget. This is good news for anyone looking to sell their business, as they will continue to pay 10% on lifetime gains of up to £1m. Anything above the £1m threshold will continue to be charged at the standard rate of capital gains tax of 20% for higher-rate taxpayers. It may therefore be prudent for any business owners looking to sell or retire in the near future to consider using a solvent liquidation procedure, know as an MVL, to take advantage of potential tax savings. 

JWS Business Recovery are located at St Ann's Manor, 6-8 St Ann Street, Salisbury, Wiltshire, SP1 2DN and can be contacted on 01722 333599 or Salisbury@jwsbr.com

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