In the face of the coronavirus crisis, businesses in many sectors are under threat.
Chancellor Rishi Sunak told a press conference that it is “an economic emergency. Never before in peacetime have we faced an economic fight like this one”.
Like many of you, we at Liquid Friday have been updating our policies and procedures to minimise disruption and ensure seamless business continuity for our agencies and contractors.
Covid-19 Agency Support Package
As the UK’s businesses become impacted by the current pandemic it is likely that cashflow could become restricted with funds taking longer to flow down the supply chain.
Liquid Friday’s Senior Management Team has met to discuss how we can best help our agency partners weather this storm.
We, working with our partners, have put the following measures in place to support you and enable you to pay your contractors without limiting your cashflow.
1. Contractor cashflow – Umbrella and CIS
Even though changes to IR35 have now been delayed to 6th April 2021, many hirers and agencies are taking the opportunity to increase their ratio of Umbrella / CIS to Limited Company workers.
In the current climate, your clients may themselves be under pressure and trying to shore up their own cash reserves.
For agencies who pay their contractors through Liquid Friday’s PAYE Umbrella or CIS services, the Liquid Friday Group may be able to offer favourable terms through invoice finance.
That means we pay the worker straight away, and you pay us at a later date, or when your client pays you.
2. Contractor cashflow – limited companies (PSCs)
The one year delay of the IR35 off payroll reforms is undoubtedly good news for all within the supply chain and provides the chance to move supplier relationships onto a business to business footing.
The good news is, if your PSCs give you credit terms, this reduces the likelihood of them getting caught by IR35, so makes it an easier sell to them. We can provide technology based cashflow solutions for your PSC contractors portfolio at no cost to your business.
As the situation with Covid-19 progresses, you may experience reduced productivity due to staff shortages among those self-isolating or in high-risk groups.
At Liquid Friday we have the teams and infrastructure to help with a range of back office support functions, including credit control, accounting, payroll and employment compliance. Please just ask.
In this together
The next few months are going to be a difficult time for us all, but we want to assure you that Liquid Friday will be here to support agencies and contractors as much as we can.
If you would like to discuss any of the services above, please contact your Liquid Friday Account Manager, or a member of the team.