Accountancy firm helps more than 40 organisations secured over £700,000 in grants or debt funding during Covid19.

As furloughing winds down, Wiltshire accountancy firm Purple Lime has revealed that the team have supported more than 40 businesses and organisations secure almost three quarters of a million pounds in grants or debt funding during lockdown.

The tech-based firm, which operates normally from Hartham Park in Corsham, Wiltshire is continuing to advise clients as the Job Retention Scheme, often called furloughing, winds down. 

Oli Thomas, founder and director, said: "At Purple Lime, we have always prided ourselves on being true business partners for our clients. This ethos has been very valuable throughout the CV19 crisis so far, with the team helping clients on the accounting and finance issues they have faced. Examples include providing assistance on financial performance planning and review, Job Retention Scheme ("Furlough Grant") claims, CBILS debt finance arrangements and streamlining accounting systems in the Cloud."

September will see a turning point for many businesses with staff as the so-called furloughing scheme draws closer to its end. Subject to the Covid infection rate and lockdown, the scheme will end fully on October 31. Those companies which take back furloughed staff can also get a £1,000 ‘bonus’ for keeping on each staff member. 

According to Personneltoday.com, 2 in 5 (44%) of organisations with staff on furlough say they will have to make some or all their furlough staff redundant when the scheme ends. 

Oli Thomas highlights five key areas business owners and company directors need to consider: 

Do you understand what will happen with furloughing in September and October? 

From September 1st, the government’s wage subsidy will drop from 80 per cent to 70%, up to a maximum of £2,190 per month, and on 1st October, it will reduce to 60%, up to a maximum of £1,875 per month.

Employers will also be required to top up wages to 80% or higher if they have previously agreed more generous top ups. From November 1, government subsidy will stop.

Have you considered the best way to end furlough for your business?

Employers should regularly review furlough agreements to see if staff can be put on flexible furlough or return to work full time. At Purple Lime, the team can support with this and start to plan next steps with compassion and precision in an environment which could change again at a moment’s notice. A stepped approach may be better than waiting until the last minute. 

Planning ahead will help you decide:

• Which job roles and skills are needed in the workplace.
• If all furloughed staff are needed back at the same time
• If any staff might be kept on furlough because they're temporarily unable to work, for example if they’re caring for someone or are shielding

To end furlough, staff should receive notice in writing. 

Considering redundancies?

It is always worth considering if there are other options before resorting to redundancy – and a company like Purple Lime can help with that difficult balance. 

Employees on furlough can be made redundant, but the redundancy process needs to be planned carefully, otherwise they can claim unfair dismissal. 

Please also bear in mind that the furlough grant cannot be used for redundancy payments.

What’s your back to work policy?

The CIPD.co.uk suggest there are three key tests before bringing people back to the workplace. These consider both the mental and physical health of a team.

Is it essential? If they can continue to work from home, or if not, is their work essential, or could they continue on furlough? This gives time for safety measures and employee guidance and consultation to be put in place.

Is it sufficiently safe? Employers have a duty of care for the health and safety of their employees, therefore they need to identify and manage risks within the working environment.

It is mutually agreed? It is vital to have a clear dialogue to reassure staff about returning to the workplace. 

Is the workplace COVID safe?

This means following guidance relating to the Covid-secure guidelines and also looking at the sector specific guidance. 

Following that guidance, ensure social distancing is possible in the work place, there are plenty of opportunities to sanitise hands and wash hands – and where needed – face coverings are provided. 

Help with all of these aspects above, including letter templates, policies and FAQs for both employees and employers. are available at: www.Acas.org.uk

What if your business is booming? 

For some business owners and teams, this has been a busy time, they have adapted successfully or their product or service is in high demand. 

This business may have a few staff on furlough or none – however planning financial future, goals and cashflow are still important. 

Is this the time to invest more to increase market share? 

Is this the time to invest in new technology to make the business more efficient? 

Is this the time to invest in more people to ensure that unexpected success is embedded in the future of your business? 

To find out more about Purple Lime visit https://www.purplelime.uk.com