Fact sheet: 'how to survive the corona crisis'
A contribution from the FHI Lexsigma Team. Read more from Lexsigma in our corona dossier.
Everyone writes about it. Repeating it is pointless. A summary perhaps.
Relevant websites include:
Liquid assets
Cash is King. Staying liquid is important to continue meeting your current obligations. Based on tips from your colleagues, this can be done in the following ways:
- Request a deferment from the tax authorities for payroll taxes and sales tax. The tax authorities grant a standard three-month deferment, without any fines or interest being due; consult your tax advisor about the possibilities.
- Try to reduce the provisional assessments for corporate and income tax and Zvw premium. This also applies to previous assessments. Consult your tax advisor about the possibilities.
- Ask your pension fund for a two-month deferral for paying pension premiums. Consult your tax and/or pension advisor.
- Contact your bank to request a six-month deferral of your business loan repayments.
- Request a deferral from your municipality for the payment of municipal taxes.
- At the moment there is a discussion about paying out the holiday money. Before you proceed to pay it out, find out if this can/may be postponed.
- Reducing advance payments such as gas, water and electricity.
- Termination of subscriptions that are not necessary for the primary process;
- Suspending means of transport that are currently (temporarily) at a standstill;
- Consult with suppliers about payment terms, which may include a discount for timely payment. The advice is: consult. Unilaterally changing payment terms causes (a lot of) friction;
- Adjusting your own salary. Normally you have to pay a minimum salary of €46,000 gross per year, but the government has indicated that it will be flexible if you pay less during this crisis;
- Claim back VAT on expected bad debts;
- Last but not least; with all these measures, liquidity can be maintained for a longer period, but keep in mind that the moment will come when payment will have to be made. Make a long-term liquidity forecast and adjust it where necessary; keep an overview.
If you have any other tips or ideas, please let us know and we can add them to the list.
Limit risks
Your colleagues mention the following risks. Consider them.
- Paying out dividends. If you operate a business in a holding company, it is a consideration to take funds from the operating company, given the legal possibilities. We call this 'paying out dividends'. This is subject to legal rules (the so-called distribution test and approval by the company's board). Please note that liability is lurking in the event that dividends are paid out and the company cannot continue to pay due debts. Directors who knew this or could reasonably have foreseen this, are liable for the deficit that has arisen as a result of the payment. Paying out (interim) dividends must therefore be done thoughtfully and with due consideration.
- If funds have been borrowed from the holding company or there is a current account relationship, it is advisable to draw up a written agreement in which the agreements on this claim-debt position are recorded. Perhaps additional securities can be recorded, such as a pledge, so that a preference on proceeds can be claimed.
- Reconsidering corporate structure. If you currently have a sole proprietorship, general partnership or partnership, you could consider incorporating it into a BV (or BV structure). Pay attention to any tax consequences (settling cessation profit).
- What are your rights and obligations? Are contracts aligned and what are the possible consequences if a subcontractor/supplier is unexpectedly unable to deliver?
- Taking out credit insurance, whereby your turnover is covered in most cases for 90%. Unfortunately, credit insurance cannot be taken out for all sectors, but ask your insurance broker or bank about the possibilities.
New regulations
There are three important regulations in the works at the moment that you can prepare for:
- Temporary scheme for compensation of wage costs:
This scheme is described in detail on the website of the central government. This scheme is based on the decrease in turnover. The greater the decrease in turnover, the greater the compensation for your personnel costs. It is still unclear how a decrease in turnover should be calculated, but it is wise to think now about how this decrease can be made visible.
We also think it is important to collect as much evidence as possible that the drop in turnover is due to the corona outbreak. So save emails that show this, record properly if you are not allowed to visit clients, ask for confirmation by email if appointments are cancelled. If necessary, take photos if you are standing in front of a closed door at clients.
- Additional support for self-employed entrepreneurs
We notice that many entrepreneurs think that this scheme only applies to self-employed persons, but this is not the case. In principle, this scheme applies to everyone who has a sole proprietorship or general partnership (or partnership on CV). Register with the municipality where you are registered and request a so-called Bbz benefit. This can amount to € 1,500 net per month per person, for a period of three months. And if this is granted, it does not have to be repaid.
- Compensation
The government's wish is to provide compensation for entrepreneurs who are forced to close (including the hospitality industry, travel industry, hairdressers, etc.). There has been talk of compensation of €4,000 per company. Unfortunately, it is not yet clear whether and what this compensation will look like exactly and how it should be applied for. For entrepreneurs where it is not clear whether you are forced to close, try to get clarity about this from the government. You can then call 0800-2117 and ask whether you are forced to close. If possible, have them confirm this by email, so that you have proof afterwards.
There are other regulations that should make it easier for you as an entrepreneur to get a loan. For this you should contact the bank.
Personnel and organization
- Stop the fixed travel allowance in good time (no later than 6 weeks after the start of working from home) of employees who work from home to prevent the situation in which the tax authorities regard this as a 'look' or in which you have to pay 80% final levy under the WKR on the fixed expense allowance paid.
- Administer the indefinite term contracts and/or addenda in time in order to be eligible for the low WW premium. The original term until April 1 has been extended until June 30, 2020.
- Inform employees with reservoirs of vacation days that the statutory vacation days accrued in 2019 will expire on July 1, 2020. As an employer, you have a duty to inform employees of this. If you do not do this, the employees will retain their entitlements, even after July 1, while it may be better for an employer, depending on the employee's position, for these vacation days to be taken during the Corona crisis.
The FHI Lexsigma Team:
- Bob van der Kamp
- Lara Smeets
- Ramon Pasma
Related companies
