DEVONGOLF FINANCIAL GUIDANCE RESOURCE - COVID-19

Advice current at time of posting: 22nd March 2020

Please find a financial guidance resource below from our DevonGolf Finance Director Chris Eddowes. We hope this may help in some way during these uncertain times.

We appreciate that these are likely to be difficult financial times for golf clubs, given the reduced number of people playing / visiting clubs at present. Additionally, many clubs will have significant concerns having just gone through the winter months and will have membership renewals coming up, which no doubt are coming in slower than normal.

We have tried to compile some useful information to assist clubs, being aware of advice my colleagues and I are producing and what we are hearing in the accountancy profession.

·         England Golf have provided some guidance here. https://www.englandgolf.org/coronavirus/

·         Within the site there is a useful link to Business Support Measure FAQs here https://www.sportandrecreation.org.uk/news/politics/covid-19-business-support-measures-faqs, which details some of the government measure and advice, including:

• Loans
• Rates relief
• Grant support
• Time to pay arrangements – if you are struggling to pay your tax liabilities on time.

·        

The Francis Clark website includes updates from colleagues on some of these matters including FAQs, ‘Latest Insights’ which has more detailed blogs and the business support and the ‘Help and Business Support’ section. These might be useful to refer to and will be updated as things progress. https://www.pkf-francisclark.co.uk/coronavirus-updates/ . I am aware of other accountants that have similar pages or factsheets, so refer to your accountant’s pages as well.

There is an extract here from the government below providing further guidance. An additional point of note is the possibility of a change of use of bars and restaurants to takeaways, with the potential removal of the normal planning processes. This might be another avenue to explore in utilising staff and providing a replacement revenue stream. Although as writing this, pubs, cafes and restaurants are being asked to close, so if this remains an option I don't know https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/873676/Covid-19_fact_sheet_18_March.pdf

If you are having or are expecting to have cashflow issues, then I would suggest:

Trying to forecast the position over the next few months, understand what obligations you will have and if these need to be managed – being aware of direct debits will assist with your management of these.

Speak to HMRC about your tax liabilities if you have difficulty paying, although recently announced measures will be gratefully received, including the deferment of next quarters VAT payments until June and grant funding of up to 80% of wages for employees not working

Speak to your banks and have an awareness of upcoming government support. Interest rates have reduced and there are measures offering reduced charges / fees on loans and overdrafts plus repayment holidays with many banks.

Speak to your accountants who might be able to assist you in measures to be taken.

Since clubs are likely to encounter similar issues, I would encourage information sharing where possible. If you are encountering issues, then please let us know as other clubs are likely to be in the same position. Sharing of information at this time will be invaluable to all golf clubs so if you have spotted useful information for clubs, then please feel free to pass these on to the office who are best placed to circulate to others.

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