Business

The After-Effects Of COVID-19 On Your Business

The After-Effects Of COVID-19 On Your Business

Coronavirus has shut down the entire world and has been declared as a pandemic. More than half the world’s population is under lockdown. The US and European nations such as Spain, Italy, France, Germany, UK etc. have been hit by it badly. In addition to that, more than two hundred thousand people have lost their lives fighting this deadly virus, and almost 3 million cases have been reported worldwide.

As a result of this pandemic, economic activities have also been struck, and recession is the natural cause of action that is expected to be witnessed because of it. Most businesses worldwide are closed except for those that provide necessities in the form of goods or services, such as grocery stores, pharmacies etc.

The Alarming State Of Affairs

The UK has been hit severely by COVID-19, and the source of income of most people is next to none today. Business owners, employees, freelancers, self-employed individuals are all facing tough times in terms of economic challenges. The government is doing its best to safeguard the economy by taking certain steps with the help of experts. Self-employed people are being supported by introducing schemes and providing a certain sum of money every month so that they can survive during these tough times. For business owners, help is being given in the form of grants, loans, removing VAT payments, extension in filing company accounts etc. Making a claim is also a straightforward procedure that has been explained clearly.

Refer more about COVID19 – VAT Deferral, Income Tax Deferral, Mortgage Support, Insurance, Off-Payroll Working

Work from home has been a lifesaver for many employees and organisations as employees are earning their livelihood from home, and companies are also running their operations, despite the current situation. For those employees who have been fired due to financial problems faced by a certain organisation, the government is giving a certain sum which can be claimed as per the specified procedure. In the case of sole traders, the government will provide 2500 pounds per month for a period of three months initially.

Expected Changes In Businesses By 2021

COVID-19 is affecting our personal lives as well in a way that it will change our way of living for years to come. Work from home will be the norm, and more and more companies will opt for this newfound approach. It has its own pros and cons, and like all things, you will find people who stand for it and those who are against it. Some advantages include eliminating the travel time to the office for employees as well as business owners and companies also do not have to invest in an office space. On the flip side, that means less interaction with team members which might result in delays in finishing work. Also, relying on technology to communicate is not always reliable.

Other changes in our lifestyles would be the addition of masks in our normal day to day lives. It will become prevalent around the globe in western as well as Asian countries. Social distancing would also be a common affair for a long time to come. Humans will be much more educated about the importance of sanitation and how to have a strong immune system. People are also bound to realise that development should not be at the cost of nature. It will certainly take time for things to get back to normal. A vaccine is the only possible solution for this pandemic to end, which is still some time away.

In the meantime, countries are willing to start their economy by opening certain businesses gradually. Starting the economy suddenly will result in a large spread of infection which no healthcare system can cater to. Opening businesses while following social distancing and sanitation is the key in order to keep the spread of infection in check and also to kickstart the economy.

Companies around the globe are reducing their workforce due to the financial problems faced by them. In the future, many people are expected to lose their jobs and livelihood as a result of this global pandemic. Governments are giving grants and working to minimise the effect on the economy. Getting jobs will also become a challenge for the near future due to the possible recession.

This unprecedented time requires innovation as well as adaptability and resilience in personal and business life. There is a scope for new startups. People need to realise the opportunities this presents and work towards it. Many new businesses will come up in the coming months to cope up with this unique time. It will naturally create new jobs which will help lower the unemployment rate and recover the economy slowly but steadily.

Get Your Business Back On Track!

Businesses will definitely be affected by this ongoing pandemic, some excessively while others not so much. If you are worried about restarting your business operations once this all blows over, get in touch with DNS Accountants. We have expert accountants and professionals in our team who can offer the best advice on how to proceed further so that the damage to you and your business can be minimised as much as possible.

About the Author:

Sumit Agarwal
, A specialist accountant and tax adviser for freelancers, contractors and small businesses since 2005, He is an expert in business growth and development strategies. A renowned tax expert for owner managed businesses and contractors, He won the British Business Forum’s Young Entrepreneur Award in September 2012, presented at the House of Commons by MP Vrinder Sharma.