by Author Carol Reid

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Advice for organisations: bolstering your organisational cashflow and income during coronavirus

This checklist summarises the main support packages and actions that can be taken by charities and CICs to bolster their cashflow and income during coronavirus.

In receipt of grant funding?

  • Almost 300 funders have committed to ‘stand with the sector’, offering financial flexibility, adapting programmes and leeway with grant requirements.
  • Contact all your funders to see what flexibility exists, and whether grant funding can be used to support cashflow or core costs.

Do you earn income from schools through a contract or service level agreement?

  • Schools are still in receipt of Government funding. The DfE’s guidance and Nick Gibb’s statement instruct that they should meet their ‘regular financial commitments’. If you can no longer deliver work in schools then try to negotiate payment regardless, rather than rescheduling.

Do you employ people through PAYE?

  • Defer your tax and National Insurance liabilities with HMRC’s Time To Pay scheme. This can be done by calling their dedicated telephone hotline 0800 024 1222 (although be prepared for queues). It has been reported that organisations have negotiated six to twelve month repayment plans.
  • Consider whether it may be necessary to furlough staff through the Government’s coronavirus job retention scheme.
  • If you employ less than 250 people and members of your team have to self-isolate then you are entitled to receive Statutory Sick Pay refunds if you meet the qualifying criteria.

Do you have a loan?

  • It is reported that banks and other lenders are open to discussing loan repayment holidays and that some businesses have managed to negotiate holidays of up to six months.

Do you rent an office or other space?

  • Contact your landlord to see if it is possible to defer your rent.
  • Organisations who are struggling to pay rent during this time are being protected from eviction until 30 June 2020 – we advise you to seek legal advice if you plan to do this.
  • If you operate out of a shared office space that is closed, review the details of your contract to see if you can pause it while your office space is unavailable – again we advise that you seek legal advice before acting.

Do you pay business rates?

  • Hospitality and leisure businesses (including cafes and live music venues) are eligible for a business rates holiday for the whole 2020/21 tax year.
  • Nurseries are also eligible if they are in a property occupied by a provider on Ofsted’s Early Years Register and wholly or mainly used for the provision of the Early Years Foundation Stage. Businesses do not need to do anything (although local authorities may have to re-issue bills).
  • If you are not a hospitality, leisure business or nursery and your property is empty, it may be worth contacting your local authority to check if you are eligible for empty property relief.