CoVid19 – 80% Employee Subsidy

So this is my Monday, the 23rd, uh, updates. It's a 11 o'clock in the morning. We haven't had the daily broadcast from the politicians, Boris or his colleagues. So I'm going with what I've got, and then I'll do another one tomorrow. So today I want to clear up a couple of questions that have come up as a result of the announcements on Friday,.

Yeah, Thursday. Friday, they, they were a public where the government said they're going to support a people's wages to 80% with a maximum of two and a half thousand pounds. There's a few bits of misunderstanding on that, which I've had conversations with clients, the over the weekend and this morning.

And so today I want to just,  the become as clear as I can given that. The government hasn't actually announced how it's going to do it. It did promise to put some newspaper articles. Maybe there'll be in tomorrow, but as of the moment, the precise details of what it does and what it doesn't cover.

Exactly. It's not clear, but here's, here's a couple of things we do know. So we're talking here about employees of a business included in the employees of the business, of the directors of the business. They are employees, okay? Now, um, you've got to be careful with what work everyone does and whether that work can continue or whether that work stops.

So there's four different scenarios I can think of at the moment, which I want to go through. The first one is the best situation where the person can continue work in situ. They just carry on as they were. Then they get paid. The government pays nothing towards that at all. Okay. The second one. Is you say you can't work from an office, you've got to work from home.

Please take, you know, take whatever you need from here and go and work from home. Do your job from home. That way the government will support. None of it. I, the 80% doesn't come in and, uh, you have to find out that the whole lot. My daughter, for example, is being asked to work from home for half a day, a week, half a day, a day, and a salary is being cut by 50%.

So government will not contribute to that. The third one is where the government was talking about people being furloughed. This is where people get sent home to work on godly, which means they can't take on any extra work. They can't take on a part time job or another job. If they didn't have one already and it was allowed by the contract of employment, they've just got to sit at home and hopefully they will observe a social distancing and maybe a social isolation just to stop this thing for spreading, save a few more lives, a lot more lives, and save some NHS staff.

Um, the risk and the risk of not only. Yeah, contacting the, the virus, but also the risk of dying themselves. So hopefully there will self isolate and be super mindful that they are saving lives just by doing something as simple as that. It's certainly what I am doing and my, in my, I've advised all my family to do.

Um, and so, you know, that's where we all met. So that's, that's those people. The salaries, Oh, going to be contributed to by the government by 80% up to a maximum of two and a half thousand pounds. Up to cellar. I think it's up to salaries or turn off thousand pounds as opposed to a contribution of two and a half thousand pounds.

Now, uh, let's have a look at, uh, the person can't do any work. They can't be working off their laptop and doing bits and pieces for you. They gotta be doing nothing. And, uh, this means that when things pick up again, they will be able to come back to work and carry on and there won't be a drop. Also, there'll be enough spending power being put into the economy to allow people to not default on their mortgages, to keep buying goods and products and keep other businesses going as best as they can.

We've already seen this weekend. Mother's day, flowers, florists and stuff, destroying all their stock because nobody was going to visit him. I didn't visit, my momma had a video call like this with my mum, like I do with my clients. And it was great to have to be able to see a face, but we couldn't have our hug.

But you know, uh, we've got a sacrifice things, right? And it's for the good of all. And, uh, hopefully we get that message across and I want to just help get that message across. So the government will contribute to 80% now how fast they put their contribution in, I don't know. And that is going to be critical, isn't it?

Because if they don't contribute quickly, you could easily run out of funds. So be careful of that. The fourth option is where you have to lay people off because you can't really keep it going. And, um, you just have to lay people off. And then you've got to sort of look at redundancy payments. But also you've got to then look at the longterm sustainability of your business.

Is your business able to survive. This particular problem, and if not, it may be, it just may be unfortunate enough to have to close the business down, wait for things to pick up and then restart the business. No, that is a really big decision. And shouldn't be taken lightly. There's probably some significant thinking and steps, and I'm all about steps, right?

I'm all about, look, have you considered this, this, this, and this, and how they play against each other. I'm all about plotting it out because when you, you see things laid out on paper, in our case, it's a computer screen. Then you begin to see how things interact with each other and decide how to go forward.

So. You've got gotta be careful if you're going to do that. Is the business sustainable and as a result of that, is it really worth taking business loans out no matter how cheap they often now, no matter how easy they are to get hold off, is it worth taking business loans off and putting extra debt. On a business that may struggle to get back to where they were in December last year.

You know, it's a big decision to make. You need to have a strategic plan. Let me, I'll give you my thoughts on it in a second, but first, let me just finish on this, on this point. One of the things we talked about in the third load. Why people are, you know, you can actually make up the other 20% they don't have to walk an 80% you can make up the other 20% if you wish.

Now again, not soft puts extra strain on the cashflow of the business. I was just on the phone to one of my clients and he says he's been giving all his customers a 60 day payment plan. And now he has to hope that they don't go bust in the 60 days before they pay him. He is diligently paying off. His team is team of staff and his directors and his contractors, and now he may not be paid for the work he's done for the last six or eight weeks and maybe longer because.

Yeah. You never do. You know, we're in a fast, fast moving, very dangerous situation, and we don't know exactly what's going to happen. We know the truth is we don't know exactly what's gonna happen. So we've got to solve, be killed.  careful. Be cautious. Be mindful of the facts, but think ahead. Think where are we going to go?

Now my feeling is that businesses. Should not take on loans. It would be my default position. Do not take on more loans, and here is my thinking, right? Yeah. The business environment will take between, in my view, right. This is my personal view from looking at how the populace is responding to the constant, the illusion of bad news.

In the press. Okay. Is that it will take between six months and two years to get back to where we were in December 19 that before you go crazy and go, you know what kind of before thinking person could say something like that. Let me explain. Right? The entrepreneurs are a minority. We're about 5%. In the economy.

Okay. The devastation that's being caused by not only the virus itself and goodness knows it, is taking people's lives. It is destroying families. It is putting enormous strain on our poor NHS staff who are working night and day. I mean 40 hours shifts. Can you believe I can even fathom that. How can somebody be looking to save these lives?

And they're working 40 hours a day and people are dying on their shift. You know, we owe everything to these people. They are all heroes, right? And if they don't deserve a pay rise, I don't know who does, if they don't deserve an OB or an MBA, I don't know who does. But that in itself, all of this. Right. And the government had predicted, Jeremy thinks 70% we're saying 80% of our population may end up in some way getting this, this bar.

And so by definition almost, it's almost by default, uh, psyche, our mindset, not ours necessarily, not entrepreneurs. But the mindset of the nation, of the people who maybe buy our products, the, and it's global, so it's not only our nation, it's the global population. The majority of the people who buy our products, Mo, the majority of the people who are our customers are affected by this.

Okay. They're affected by the news. They're affected by the illness. They affected by the family getting out. They affected by not being able to go out there. It's affected by not being able to do their daily routines. They're effected by the constant deluge of bad news and the press there it is. It is just so prevailing.

So you can be, you know what? If it wasn't so preventing, we wouldn't be having shops that are empty. You wouldn't have taught it rolls and cans being sold out. He wouldn't have a billion pounds of prod of more food products being stored in. There was a month ago, so, yeah. Mmm. I'm just a realist and I'm a positive minded person and I'm positive that being a realist, that things are changing and it'll take a good while to get everyone back to normal.

Now. Well, if you don't agree with me and you think everything's going to go back to normal in three, four 12 weeks, and Barossa is going to be able to knock this virus on the head and everything's going to be sweetness and light, then obviously I'm talking nonsense and brilliant. There'll be no one more pleased to be wrong than me, right?

I would be the happiest person in the world to be wrong if everything goes back to normal in three months. I believe that even if everything goes, if everything changed tomorrow and the virus was just stopped in its tracks tomorrow, it would take at least a month, maybe two months to get back to normal.

Now you still take that forward and you take that too. The virus going on for three months, a lockdown for 12 weeks. How long would it take. Realistically for everyone to come back together. Everyone just doesn't walk into a job and go, right, I'm ready for work again. Businesses don't just start up, you know, people who've lost, lost their businesses, they've got to set up again.

So we've got a plan and I think a completely new strategies in order. Now what the strategy will look like for you and your business. I don't really know cause I don't know enough about your business right now, but I do know that the strategy that you were adopting, if it was written in your head three months ago, is probably not going to be enough to sustain your business for the next two or three months.

Okay. Excuse me. Let me just turn this off. It's not going to be sustained for the next two or three months. So just, just that is my opinion. If you don't, you know, I talk about strategy and setting goals and setting action plans in three months. Um, a lot in many people ignore me and I've had a lot of success with people who don't ignore me, but it's up to you.

And like I was told over the weekend, I was so, not quite a lot because I've put a plea out to Boris to help. People who are employment and people are self employed to help give them some certainty of income. And by the time the video went out to the populace, the ad put it in as an ad cause I wanted to get the mission to Mars.

By the time that went off, Boris had made his announcement that he was going to support employees, but yet he hasn't made any announcements of how he's going to support the 7 million out of 25 million working. Who all freelancers. So for example, in my, in my, uh, personal family, I have daughter daughters being put on half time.

I think I mentioned that I've got a daughter who is a freelancer who is completely out of work. Not because the industry has taken a massive hit. I've got a daughter who's in the tourist trade, completely knocked out, don't know work. I've got a daughter who's working from home, so she's working full time from home and self isolating because somebody in the household has got a very light symptoms and I've got a son who at the moment is going that, well, he was working, but he's now going to say, you're going to have to self isolate and work from home because of the same position.

Is that somebody in the household has. Um, exhibited SIS symptoms. So, you know, there's five different case studies right there. So just be mindful of the fact that things, Oh, changing environments are changing, working methods changing. If you haven't worked virtually, then now maybe the time. There is no better time to communicating regularly with your customers and clients.

The now and beginning to practice these new methods. If you'd like to join me on how to do that. I've been doing it for over seven years now, so we're pretty good in practice at it. We can help you develop a strategy for being able to do that. We can help look at it. What your skill sets are, not of your team and how we can, we engineer and we, we work it to do something really spectacular, uh, with your team and your skill sets and your knowledge base to be able to, to look at this new environment, this new world we're emerging from in the coming weeks, months and years.

So. The first thing is, bear in mind, the government plan is not to support everyone ad infinitum. Uh, and you know, if you are a direct annual on, say 10,000 pounds. Per year, then, uh, you will have 80% of that being contributed to, and you may think, Oh, I could just increase my salary to 30,000 now and I can get 80% again.

Johnson's are, that's not going to work. It's not one, it's not ethical. It's not probably viable. And the government is not going to just let someone go. I'm going to take the Mickey out of the system, right? The country doesn't need that right now. We need sensible, sensible, joined up thinking, uh, rather than let's hot.

Let's take advantage of the situation. Let's be opportunistic. Let's serve our communities to serve the people around us and be sensible about it. The country needs. Entrepreneurs positive thinking. It needs entrepreneurs to think outside the box. I saw some brilliant stuff the other day from a couple of companies as McLarens and Gtech big shout out to those two really big companies.

They have amended their working practices and the engineers to build ventilators and there they believe in that can be producing G-Tech. I mean, we're talking about producing a thousand ventilators a day. I mean, that would be an adult send to. Not only this country, but the world at large. The number of people are going to get hit.

are amazing. We need as many ventilators in these companies. The entrepreneurial spirit, the engineering spirit, the gung ho, let's get things moving. Let's do something is, is prevalent here. And, and you know, none better than the, uh, the entrepreneurial group that, uh, that I love working with. So let's get to it.

Remember, remember to put your claims. If your silk yourself isolating, don't forget to claim stock to pay. Because you're entitled to get structured stick based. Not a lot of money, but it is something and you know, it'll help, you know, make, make ends meet or director or not. You gets actually sick pay if you're a freelancer, if you're a self employed, you don't get any such sick pay.

But the government is saying they will try to do that and let's see what they do and how much mechanism they have to doing it. All right. That's it for this one. It's a bit of a long one, but I, that was a lot to cover and things are moving fast. Things are dramatically changing and I want you to make sure that, you know, you hear my thinking on it and you can ignore it then or take heathen and follow it through if you need help.

We had to help you take care all the best. Keep well, health is best. Keep your distance. Absolutely good. Protect the NHS, protect your, your fellow citizen, and, uh, let's, let's live to fight another day. Take care. Goodbye.