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COVID-19 Assistance

03.2020

 

Since the outbreak of coronavirus in Malta, our group of companies, Business Concept International plc has been proactive and offering its assistance to those impacted by this pandemic, particularly through Fairwinds Management Limited and Accounting Services Ltd. The COVID-19 Malta support company services can be found below.

Employee voluntary salary reduction plan

by Fairwinds Management Limited

Fairwinds Management Limited is proposing a voluntary reduction in salaries as well as other suggestions to prevent any possible cashflow problems and help businesses survive these challenging times that can lead to little or no turnover, loss of contracts and loss of future revenues.

Rental contract – check for force majeur clauses, ask your landlord to give you complimentary months, or to renegotiate contract. If you are a good tenant, he will be concerned for you too, as good tenants can be hard to find. Remember that landlords are preoccupied as much as tenants.

Reduce staff – those employees who are on probation can be made redundant without specifying a reason.

Opening hours of your business – analyse the flow of business and adjust to open for less hours, that way you reduce various costs such as water and electricity bills.

Stock – Strict stock ordering, make offers on items you cannot sell, put items that are paid but unsold on heavy sale to generate cash – this will give you cash flows. Return items that are slow moving or on consignment or you cannot sell to suppliers, in return for a credit note or a reduction of balance due to the supplier.

Salaries: The biggest cost

Reduce working time (e.g. three-day/four-day week) and pro-rate the salary accordingly.

– Postpone any commissions by deferring the payments for three to six months’ time.

– Postpone any performance bonuses (whether due for a previous year or upcoming) by deferring payment or staggering it over time by doing stage payments.

– Ask employees to make use of their annual leave. This is not a cash flow measure but in case of redundancy it will reduce the termination cost impact.

Full details about this plan proposed by the legal team including all fees, are found here.

You can also get in touch directly with Dr Adrian Sciberras on asciberras@fairwindsmanagement.net

Apply for COVID-19-related initiatives

through Accounting Services Ltd

The experienced professionals at Accounting Services Ltd are assisting businesses and individuals to benefit from the fiscal measures announced by the Government. Amongst others, assistance is being offered in relation to the following incentives:

Postponement of income-tax, VAT and National Insurance contributions

A grant of €350 given to employers for every employee on quarantine leave

An additional two-month paid leave at the rate of €800 monthly to families where both parents are employed and where teleworking does not apply to any parent, so one parent has to take care of the children

Employers and self-employed individuals investing in technology that enables teleworking and to partially cover the costs of teleworking solutions, will receive support limited up to €500 per teleworking agreement and €4,000 per undertaking. The grant shall be awarded against 45% of the eligible cost

Employees of entities mostly hit by the suspension of operations within the sectors of accommodation, restaurants, entertainment and language schools, will be paid for five days a week, based on €800 monthly. This includes all self-employed. Part-time employees will be eligible up to €500 per month

Self-employed in other adversely affected sectors who have employees will be entitled to two-days’ salary per week equivalent to €320 per month

Gozo based enterprises will receive two days’ salary per week equivalent to €320 per month for full time employees, and €200 per month for part time employees

Self-employed based in Gozo operating in other affected sectors will be entitled to 2 days’ salary per week, €320 per month. This will increase to 3 days salary, equivalent to €480, for those self-employed who employ staff, and the employees will be entitled to two days’ salary per week

 

Employees who had their full-time employment terminated as of 9th March 2020, including those who were self-employed, as a result of the COVID-19 pandemic will be eligible for the Contributory Unemployment Benefit and will receive a direct payment of €166.15 if work was in full-time before you became unemployed or €103.85 per week if work was part-time before becoming unemployed.

Primary deadline for self-employed persons to submit their MicroInvest application has been extended until 30th April 2020

More details about the coronavirus Malta support for business full incentives that one can benefit from, and will be updated from time to time, can be accessed here.

If you are eligible, we can help you apply to benefit from these incentives. Get in touch with us on admin@accountingservices.com.mt for more information.

Contact us today for more info.