Responding to Coronavirus COVID-19

Over the course of two months we have witnessed an extraordinary national response to the coronavirus COVID-19 health crisis. Our policy makers have delivered historic stimulus and relief packages, our healthcare system doubled down, borders have been closed and banks and businesses have bent their efforts towards protecting lives and livelihoods.

Halfway through April and there are positive signs the curve is flattening. However we are in this for the long-haul and with most, if not all, major policy announcements made, businesses can now turn their minds to how they will navigate this new normal.

With specialists across business risk, business continuity, workforce, tax, compliance, supply chain and restructuring, we are here to help. This may be an assessment of your risk and cash flow, identifying alternative suppliers, or preparation for meetings with suppliers, banks or the ATO to access additional support or extensions.

Initiatives designed to support businesses and the self-employed

The outbreak of COVID-19 is affecting every business in Jersey. Businesses are being forced to adapt their working practices, strategies and model to reduce the impact of the outbreak and ensure they can survive post crisis. Jersey's Government has been working to support businesses and the self-employed operating in Jersey with a series of measures and initiatives designed to offer financial support to businesses.

These measures are being updated frequently, but to help you navigate the various updates, we have published a bulletin that offers a summary and explanation of all the support available locally from Jersey's Government and the Banks alike.

It includes the support offered to businesses as well as the various tax measures announced by Revenue Jersey concerning personal income tax obligations, adjustments to your ITIS effective rate, tax arrears, deferment of GST payments, social security contributions and the filing of tax returns.

Webinar: Cashflow management in a Crisis

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Business continuity plans and crisis management

The current situation continues to evolve and businesses will need to remain agile and alert. A good starting point on creating a response to COVID-19 is the World Health Organisation’s technical guidance and the Australian Government which has released guidelines on how to mitigate the spread of COVID-19.

Some areas to consider include:

Your people

Have measures been put in place to support good hygiene and health for your people, including restrictions to international travel, advice on attending client meetings, site visits and events?
Do you have a clearly communicated policy on what your people should do if they are feeling unwell – including seeking medical attention and isolation? What will this mean for colleagues and clients if you suspect a case of COVID-19?

Review your customers and suppliers

Do you need to inform your clients and customers of any changes to your services? This could include different opening times, delays in deliveries or deadlines.
Do you have plans in place to ensure regular and clear communications to clients about your policies and updates on changes to service?
With international travel and export impacted by COVID-19, have you assessed the strength of your supply chain and do you have alternatives in place if you need to source another provider?
Which customers will need extended terms from you and which suppliers might require different arrangements? Liaise with your suppliers to determine how they can support you.

Cash flow and financing

Any changes or delays in service can have an impact on cash flow. Do you need to have discussions with clients or suppliers about renegotiating terms?
Your banker will be invaluable in helping you over the next couple of months. Plan early if you are going to need additional funding to get restarted. Make sure your banker is across your plans and understands where you are going.
Most banks have hardship teams offering a range of services that may be of support. For more information, or to find the number for your bank’s hardship team go to https://www.ausbanking.org.au/campaigns/financial-hardship/.

Check your insurance cover

Re-assessing insurance coverage – businesses may have insurance coverage to protect certain assets, however, they should ensure they are covered for the business interruption expenses that natural disasters can cause.

Stakeholder management

During these difficult periods, proactive stakeholder management becomes extremely important, in particular with financiers, shareholders, customers and employees. Communicate with these groups early and often!

Get advice and look after yourself and your people

In addition to ensuring the health and safety of yourself and your people, we strongly encourage you to speak to your advisors about how your business can respond to COVID-19.