COVID-19 Assistance

03.2020

Since the outbreak of coronavirus in Malta, we have been proactive and offering our assistance to those impacted by this pandemic, particularly through Fairwinds Management Limited and Accounting Services. 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

The experienced professionals at Accounting Services 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:

Wage supplements extended until March 2021 to pandemic-affected businesses. Eligibility will be revised at the end of the year based on tax returns data

Repayment of Tax Deferrals and Moratoria on Bank Loans will be facilitated through prolonged payment schedules and the maturities of loans will lengthen

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

A scheme by Malta Enterprise will be set to help companies re-structure their business models. €5,000 budget per business will be reserved for consultancy services in this regard

Tax credits received as part of the Malta Enterprise MicroInvest scheme can also be transferred into cash grants

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.