Retail, legal and insurance leaders have been answering questions from Liverpool's businesses about how to deal with the coronavirus crisis.
Led by the Liverpool BID Company, the Q&A saw city business leaders answer queries from all sorts of levy-paying firms from around the area, on issues from insurance for closed buildings to unpaid invoices to difficulties encountered during working from home.
It took place on March 27 and the panel included Bill Addy, chief executive of Liverpool BID Company, Keith Tully and Jason Greenhalgh - partners at Begbies Traynor, Charles Millett - partner at Morecrofts, Shaun Holland - head of operations at Liverpool BID Company and Troy Johnson - development director at Griffiths and Armour.
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Here are the 13 questions - and how they were answered by the panel.
1. What should I be doing about my tax payments as a small business?
Businesses may be able to agree to a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559. There is also a deferral for VAT until June to provide extra relief for businesses. This is an automatic deferral.
2. I am waiting for companies to pay my invoices, what should I be doing in the meantime?
Communications is key. You can manage your expectations by communicating with all parties, including:
- Staff
- Landlords
- Creditors
- Debtors
It’s important to remember, everybody is in the same boat. People will be looking for other areas where they can get cash, looking at their own cash flow. There are many other areas where you can find additional funding such as grants and schemes.
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3. I am eligible for a business grant to cover my current cash flow, but where do I get it from and how do I apply?
Liverpool City Council is administering the “Small business grant fund” and the “Retail, hospitality and leisure grant” for businesses that are part of the wider government support response to the coronavirus outbreak. Businesses need to apply in the link below.
- The Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
- The Small Business Grant provides a £10,000 cash grant for smallest businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief.
If your business has multiple premises, you must submit an application for each one.
4. What happens if I have an overdraft for my business?
A number of banks are making those overdrafts without fees. The first thing is to contact your bank, speak to them directly.
5. My business is just over the threshold for the grants available, what business can I get?
The channel for support for any business which is just above the threshold for the grants is the Coronavirus Business Interruption Loan Scheme (CBILS).
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6. Am I covered by insurance?
This is a broad question. A good initial source of information and advice is:
- The key for me would be to contact your insurance broker (if you have one) or a trusted insurance professional.
- Check ABI – Contact your broker for clarification on the specifics on your policy as policies differ.
Unfortunately, Pandemics/Coronavirus are in most cases not considered as an insurable cause.
7. What should I do about my closed premises?
Businesses need to notify their insurance company and ensure that the premises are secured. Requirements are different from insurer to insurer.
8. Do you have any advice about keeping my business safe while it's closed?
We suggest that you:
- Review your security measures within your premises.
- Establish physical protective measures
- Review your cybersecurity
- Notify your insurance company
Here at Liverpool BID Company, we are coordinating a Daily Liverpool city centre Operations group to link Liverpool City Council, Merseyside Police, essential businesses and stakeholders to share information and solve operational issues.
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9. Are there any specific sectors that are eligible for workers to be furloughed, are some sectors not eligible?
There are no specific sectors as such that are eligible and none that aren’t. It is important that your workers need to be on payroll by 28 February 2020. Your workers can’t do any work for the company, but they can do training. Your workers can work for other companies during this time and go to interviews.
10. My team is struggling working from home, do you have any advice?
We suggest:
For employers
- Daily catch up with your team
- Stay in touch with your employees, both those working and not working
- Manage your health
For employees
- Follow a structured plan for your day
- Keep in touch with your colleagues, family and friends
- Keep yourself entertained online
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11. Are Liverpool BID Company talking to other cities to coordinate efforts?
Towns and cities have got the same issues. Different business networks are coming together and talking to counterparts in different cities and places to share expertise and knowledge. In Liverpool, a group of businesses and networks have come together to form a Business COBRA. It’s a useful exercise to understand best practice, and which places are working and may have solutions or ideas that can be rolled out in cities across the country.
12. I have shop insurance that is supposed to cover business disruption but the insurance company says it doesn't cover closure, only closure through damage. Can you give access to free legal advice about this?
It’s important to examine your contract with your insurer or broker (if you have one). Insurance policies require a ‘trigger’ to make the policy respond. Most of these relate to damage, however a number of policies will also respond where physical damage has not occurred. Troy Johnson at Griffiths & Armour is available to review your insurance policy if you would like some extra guidance in this area.
Legal support would only be advised as a last resort as it will depend on the contract and agreement you have signed with your insurer.
13. Will the BID skip payments during the lockdown as it's not offering anything of value and we're under financial stress? That would be the most important thing that you can do for businesses in the BID right now.
All businesses are under financial stress in this moment in time, which is why the government have announced all the measures they have in place, Liverpool BID Company are continuing to work hard on behalf of our BID Levy Payers in new ways that we hadn’t planned weeks ago, we continue to lobby on your behalf locally, regionally and nationally, we are ensuring with our BID Police Officers that the city centre is safe and secure for all businesses. We are providing regular and transparent communications.
Our own BID Levy bills are not due until June and we are working with the Government to establish how we can support levy payers during the next year. The recovery from coronavirus will only work to the whole of the economy if we work together on this and that’s what Liverpool BID Company is doing now.