General

It is heartening to hear that, whilst many sectors of our economy in Northern Ireland are still deep in trouble, some sectors are beginning to see the green shoots of post pandemic recovery and recruitment is gathering momentum.

Some Parts Of The Economy In Bullish Mood

According to the latest Jobs Report that NIJobs.com have released in conjunction with Ulster Bank, the first quarter of this year has shown a 40% increase in recruitment levels from the previous quarter, which has actually trebled since the nadir of the second quarter of 2020 when the country was deep in lockdown. If you look at the figures on a year on year basis jobs are up over 20%, which is a very good sign some parts of the economy are in a healthy state of mind.

The sectors that are still showing lower levels of recruitment are the hospitality sector of course, which is down over 70% year on year, as well as the retail industry and the social and not for profit sectors. But the top performing sectors right now include nursing and healthcare, along with general services, general management and security trades.

Companies Continue To Invest In IT

IT has been an important part of the Northern Ireland economy for many years now and employers in this sector are very much sought after as companies continue to invest in this area. This is one of the key areas of the economy for the country and so it is vital that big IT companies are still happy to recruit and invest here. There are also many IT start ups making their first steps which is great to see. With Belfast being one of the first UK cities to be involved with the 5G roll-out it could be an exciting time for the industry.

Furlough Payments & Grants Have Helped Considerably

There is no doubt that the financial help given to the economy in the shape of furlough payments and various grants and other funding has helped to keep businesses afloat and importantly workers in jobs, so although we have been in a deep recession the employment levels have not fallen as much as was first feared. This leaves us in a stronger position to grow our economy when all the lockdown restrictions are finally lifted.

So we are not out of the woods yet but there are signs that optimism is returning in some sectors of the economy which is excellent news for us all. Meanwhile if you have a business that could do with some help and advice from an experienced and knowledgeable accountancy firm get in touch with our friendly team here in Armagh on 028 3752 2909.

It is great to see that the pubs, cafes and restaurants have finally got some dates for when they can reopen their doors to the public once more, but the response has been rather lukewarm from the hospitality industry so far as some feel things are not moving along quickly enough. And the dates are of course subject to review in case infections begin to soar at any point in between.

Outdoor licensed and unlicensed premises like beer gardens, cafés and restaurants serving outside could be opened as soon as April 30, with May 24th being the date set for when indoor hospitality can start up again.

Businesses Can Now Start To Cautiously Plan Ahead

Speaking to Belfast Live on the dates set by the Northern Ireland Executive, Martin Kelly, who owns Biddy Farrelly’s, a café in the Smithfield area of Belfast, said:

“At least we’ve got a date, the fact we never had dates before and nobody knew what was happening, while England had dates, we were all in limbo.

“At least now we can plan and say potentially we’ll be open, because you don’t know for definite we’ll definitely be open. So potentially we’ll be fully open on May 24 and that’s really what you plan for.

“We have an outside area, but you can’t get a big amount of people in it and with social distancing you can get even less in it. As much as you use what you have, it’s still not enough to keep you going.

“Yes, you can put a few chairs outside, but you know what our weather is like. You could have sun and rain all in the one day, who’s going to want to sit outside?

“The other problem for us is we’re in the town, and the town’s dead. You start to think if we open, will we even get the trade? If all the big shops in Castlecourt like Debenhams have started to close down, people are starting to drive out to the likes of Abbeycentre and Sprucefield.

“It’ll be interesting to see what happens in England over the next few weeks because if cases start rising, they might put things back.”

Hope Is Now On The Horizon

In the same article Hospitality Ulster Chief Executive Colin Neill welcomed the dates saying:

“There are still several weeks to go for outdoor to be opened and five weeks still to go for indoor hospitality, but we now have dates and a timescale to work with. Whilst these are indicative dates, especially for the reopening of indoor, it is hoped that the programme can be accelerated.

“Hope is now on the horizon and for those who have been able to survive this devastating period it is now time for them to prepare their businesses for the long awaited resumption of trading. It is now in everyone’s interest that we make sure that all precautions are taken to get us through these next few weeks safely.”

“Our industry has spent millions of pounds on Covid secure measures and will reopen in a responsibly way, but any additional restrictions must allow businesses to operate on a sustainable footing to secure the future of the jobs depending on them.”

Let us hope that there are no more hiccups on the road to economic recovery and businesses can get back to what they do best.

Following a review of the Localised Restrictions Support Scheme grant, the Department of Finance in Northern Ireland has contacted 480 businesses requesting them to repay the money they have received. This will of course come as a big blow to these businesses unless they can procure funding from another source or appeal against the decision.

DoF Has Written To 480 Businesses Requesting Repayment

Here is what the BBC News has reported on this situation on their website:

`The Department of Finance has written to 480 businesses requesting the repayment of money issued under a Covid-19 grant scheme, BBC News NI has learned.

`Following a review, officials are seeking to recover £4.38m.

`A spokesperson said businesses could appeal the decision or apply for funding from different schemes.

`The Localised Restrictions Support Scheme (LRSS) was established in October.

`It is linked to the restrictions placed on businesses and has paid out £260m to more than 13,000 businesses.
The department said all applications were continuously reviewed to ensure the scheme was working within the regulations.

`Payments are linked to the rating system which BBC News NI understands has made its administration complex, especially as restrictions changed.

Incorrect Payments Occurred For Number Of Reasons

`Incorrect payments occurred for a number of reasons, including:

• The business was permitted to operate during the restrictions period.
• It has ceased trading since the application was made or wasn’t open and trading at the start of the restriction period.
• It is not operating from commercial premises.

`Businesses can appeal the decision and provide further evidence which may result in payments continuing to some businesses, reducing the overall amount of overpayments.

`It is understood officials believe a number of the 480 affected firms will be eligible for a grant scheme established by the department in March.

`If a business cannot repay the amount, Land and Property Services has said it will enter into a payment arrangement.

While payment arrangements are all well and good it is not an ideal situation for any business to have extra payments to find during this very stressful period for the vast majority of them. Why more checks were not made before these payments were made is mystifying really and just adds to the uncertainty and worries of the economic situation.

At WHR Accountants we have helped many businesses over the years secure extra funding for their business, so if you feel you need any help in this area please don`t hesitate to give us a call on 028 3752 2909 and we will do our utmost to help you.

There is no getting away from the importance of a comprehensive, well constructed and well thought out business plan. It can save a business a great deal of pain as well as revenue, and it can sometimes literally mean the difference between success and failure.

Let us share with you 4 huge benefits of creating a business plan as posted on the Patriot Software website:

1. You Can Get Outside Funding

`To get funding from lenders or investors, you need to show a business plan. Lenders want to see that they are investing in a company that will last and grow. You must give lenders a plan detailing the steps you will take as a business owner.

Even if your lenders are friends and family, it’s good to organize your ideas.

A business plan helps others understand your passion and see where their money is going. Communicating clear ideas to investors helps prove you can get your business off the ground and build it up.

2. You Gain An Understanding Of Your Market

`One key piece of your business plan is knowing how to conduct a market analysis. When you conduct this study, you look at your industry, target market, and competitors. You can see trends in decisions that could help, or harm, your business.

Another great benefit of a business plan is learning from someone else’s mistakes. Learning from other’s mistakes is less time consuming and financially burdening than learning from your own mistakes. The more prepared you are to deal with the aspects of your market, the easier it might be to handle issues down the road.

3. You Focus Your Strategies

`The entrepreneur in you is eager to dive right into business. But, having a business plan can help you pinpoint the best strategies for your company. Before you take the plunge into ownership, work out the important details.

This business plan benefit also helps you prioritize tasks. By looking at the big picture of your business, you can decide which challenges to tackle first. A business plan could also help you choose which tasks to address later.

4. You Can Check The Financial Numbers

`Business plans include financial projections for your company. While the projections are not a peek inside a crystal ball, they do represent a forecast of your financial health. Planning for expenses will be important for keeping operations steady.

Cash flow projections help you see if your goals are possible. They also point out trends that could potentially harm your business. The faster you spot upcoming issues, the faster you can correct problems.

Be sure that your projections match up to your expectations. Have you set aside enough money to do the tasks at hand? Double-check your numbers so you are prepared to handle your finances in the future.`

How WHR Accountants Can Help

There are many other benefits to a sound business plan. At WHR Accountants we can provide you with impartial advice and assistance on:

• The correct business structure for your needs
• Preparing a business plan
• Developing your business plan
• Sourcing grant and loan finance
• Setting up appropriate and efficient financial systems
• Taxation aspects of your business

For more details on our services get in touch with the WHR team on 028 3752 2909.

Firms in Northern Ireland can apply for loans through the Government backed Recovery Loan Scheme, however, because the country is still in the EU single market for goods they will have to adhere to EU subsidy rules when applying for such a loan.

The Government Guarantees 80% Of The Loan

Here are details of this ruling as copied from an article on the BBC News website:

`Under the Recovery Loan Scheme (RLS) UK firms can borrow between £25,001 and £10m.

`The money will be lent by banks with the government guaranteeing 80% of the loan.

`The terms of the NI Protocol mean Northern Ireland is still in the EU single market for goods and so is still subject to EU subsidy rules for trade in goods. This mostly affects manufacturers.

`It means that firms in Northern Ireland applying for the RLS will have to comply with what is known as the EU’s Undertaking in Difficultly (UID) test.

`These are EU rules setting out the circumstances in which state support can be given to a firm which is in financial trouble.

Previous Schemes Were Covered By The UID Test

`Previous UK Covid loan schemes were covered by the UID test because they were introduced during the Brexit transition period.

`The Recovery Loan Scheme will have a UK version of a UID test, but it will be simpler than the EU rules.

`For example, only GB businesses in collective insolvency proceedings (with the exception of businesses that have entered into a Company Voluntary Arrangement since 16 March 2020) will be excluded from the RLS.

`The Recovery Loan Scheme also has the potential to act as a test of one of the most controversial elements of the NI Protocol – the extent to which EU subsidy rules will apply to GB businesses.

`This is covered by Article 10 of the protocol which essentially says the UK as a whole has to follow EU rules if a UK-wide subsidy could have an impact on trade in goods between Northern Ireland and the European Union.

This is not an ideal scenario as outlined above, but it is what firms will have to comply with as things stand unless a change in the regulations is introduced further on down the line.

If you require any help or guidance regarding this loan scheme or any other type of funding for your business please give our offices a call on 028 3752 2909 and we will be glad to advise you.

Over 400 businesses in Northern Ireland are urging the Executive to reopen the economy as soon as possible as fears for jobs and businesses intensify. The ongoing pandemic with its associated lockdowns have decimated the economy and so these businesses feel it is vital that the First and Deputy First Minister act swiftly. In an open letter to them they say that not only are thousands of jobs at risk but also the health and mental well-being of large swathes of the population.

Open Letter From Business Owners & Leaders

Here is the letter as copied from the Business Live website:

“We are a collection of 407 business leaders and owners from across our region who collectively employ thousands of people in a range of sectors of our local economy. Our hope in writing to you is to give you a sense of the fears we share for thousands of jobs and the future of our economy.

“Many of us have seen our businesses closed completely or severely restricted in their operations for the majority of the past year. We are acutely aware that those closures and restrictions have been introduced as the Executive has grappled with the unprecedented challenge presented by the coronavirus pandemic. Equally, we appreciate that the task that you and your Ministerial colleagues have in guiding our society through this crisis is immense.

“None of us are health experts. We are employers and entrepreneurs. We would not presume to offer the Executive medical advice, but our collective experience means that we can speak with some authority on our deeply held concerns about the potential profound and long-lasting impact that ongoing restrictions on our economy are having not just on the economy and our businesses but the wellbeing and livelihoods of our staff.

Businesses Right Across Northern Ireland Seriously Struggling

“You will not need to be reminded that businesses right across Northern Ireland are seriously struggling. The support that the Executive have provided has certainly helped, but it cannot possibly insulate all businesses from all of the effects of this crisis. Many have mounting debts, having already consumed what reserves they have. They are paying money out every month to try to keep their businesses afloat and their staff in jobs even though they have no income whatsoever. And we are increasingly anxious that without a timely reopening of our economy, a huge amount of the more than 100,000 people on furlough in Northern Ireland will be made redundant. No one would want to compare one crisis with another but we are all well aware of the damage to health and wellbeing that unemployment brings to individuals, families and our entire society.

“We are all heartened to see that our efforts are paying off and the virus is in retreat. We are hugely impressed at the world leading roll out of the vaccine that so many have already benefited from. We are evidently moving in the right direction that we hope will soon permit the safe reopening of our economy.

“We have endured many crises and challenges in this part of the world but it is no exaggeration that none of us, in all the years we have collectively been in business, have experienced as alarming and possibly devastating an economic situation as the one we currently face. We know that you will be as keen to begin moving towards recovery as we are but real economic recovery cannot commence until all of our economy is reopen.

“Our plea to you both as leaders of our region is to work with us to make that happen as soon as safely possible. Businesses need both hope and some certainty. Show us that our combined efforts are being rewarded with a proper, timetabled plan for reopening. We want to avoid the devastating mental health impact that flows from high levels of unemployment and avert a looming jobs crisis that will hit households in every constituency in NI. Let us begin on the road to recovery, secure jobs and start to rebuild our economy and stave off a jobs and economic catastrophe that will reverberate for many years to come.

“We would greatly welcome the opportunity to discuss these issues and our concerns with you both in more depth.”

It will be interesting to see how quickly these businesses pleas are acted upon in the coming days and weeks.