Covid 19 has certainly taken the world by storm. With all the lifestyle changes, businesses that are still closed on a national level, the changes introduced to the legislation – it has been a whirlwind of a year. The government understands the need for lockdown and precautions to lower the chances of further spread of the virus but this is not an idle acceptance.
From furlough to
now Flexi-furlough, wage subsidy to replace furlough and the changes to rent concessions on leases, the
government has played an active part in making things easier for people.
However, being updated is something especially small business owners cannot do
and so due to this what we are left with is a tight scenario where either they
do the work on their own or they choose instead to outsource certain functions
like payroll or tax return filing
Recently a new 3-week grant has been issued for both large as well as small businesses but one has to bear in mind that the businesses concerned here are the ones that have been affected locally. Due to local lockdowns, many businesses have been unable to even staggeringly get to their feet. Thus, not wanting to leave anyone out, the government has suggested £1500 for large scale businesses and £1000 for the smaller ones.
Considering all these overwhelming changes, it does makes sense to at least outsource some administrative work which is why many small business owners have chosen to go that way. In the long run, outsourcing proves to be more cost-effective as well because experts work much faster and make a fewer mistake than a layperson who has been wedged into the situation for the first time. When applying for most grants you would have to do so yourself but an expert can give you sound advice. However, when it comes to complex elements like Flexi-furlough, running the payroll on one’s own does get challenging. Furthermore, on the same vein, there is also the £1000 bonus that has opened in February 2020 that one needs to contend with.
Keeping up with the
changes
The coronavirus Job Retention Scheme – Furlough – now Flexi furlough. Previously NIC and WPP contributions made by the employer were claimable (till June 2020). From July with the introduction of hours worked only the non-working or furloughed hours’ contributions were claimable. Now, however, none of these contributions is claimable and though furlough remains at 80%, the employer would have to contribute 10% and later 20% to this respectively reducing the claimable amount even further.
Then VAT too has taken a change from 20% to a narrow 5% as far as accommodation and food goes as well as tourism. Therefore, it behoves a business owner to know what’s on the platter so that they can plan accordingly. However, researching the internet for all the changes is not something that is everyone’s cup of tea and even if it is, it takes up time. Why waste time when you can have someone more competent look after things for you?
Outsourcing - a new
avenue in a changing world
Change seems to be
something that has become a part and parcel of how we are to view 2020-21. But
instead of making the situation more challenging and not being able to make the
most of the help offered by the government, it would be better to outsource
where required. Full-time staff and hiring along with the recruitment process
are not feasible in the quickly shifting present scenario. Based upon this, it
would pay in time and future returns to trust the experts and let the chips
fall as they should.
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