Nearly every industry has been significantly affected by the outbreak of the COVID-19 pandemic. While some business owners in the UK remain optimistic that the effect of the coronavirus on their businesses will not last beyond 2020, the majority that their businesses may be affected until the end of 2021.

For this reason, governments around the world are beginning to strategize how they can implement new regulations in a bid to ease the pressure COVID-19 has placed on businesses, especially during the necessary lockdown. In some countries, private entrepreneurs have temporarily been exempted from land fees and several tax schemes in an attempt to reduce the pressure on businesses.

While other nations have also implemented a few other laws to relieve the difficulties faced by businesses, doubts still remain in relation to the efficacy of these new laws. Hence, some business owners have pleaded with the government to consider the implementation of further measures during the lockdown.

BUSINESS CONCERNS DURING THE QUARANTINE PERIOD

It is no surprise that the quarantine has placed several seemingly insurmountable challenges on businesses. The most significant concern for businesses amid the quarantine is how their employees can work remotely. The quarantine has exposed the weaknesses of some businesses when it comes to employing the use of advanced technology in their business processes. Many businesses have previously disregarded the benefits that could be obtained from managing documents electronically. However, a lot of business owners claim that the reason for this is fear that a tax agency may impose sanctions if they are not able to provide documentary support that is paper-based.

For these reasons, some businesses have felt compelled to instruct employees with signatory authority to keep coming to the office despite the quarantine instructions imposed by the government. This is a significant concern for these businesses as some of their employees live far from these offices. As a result, they are in some ways paralyzed in their attempts to keep their businesses afloat.

Some intelligent business owners have begun implementing the use of temporary, modular facilities in the bid of keeping crucial business activities going. Many of them have turned to this alternative because these facilities can be assembled in no time and they can be rented for only the time they are needed. Visit Smart-space to learn more about these facilities.

THE TAX RELIEF SCHEMES IMPLEMENTED BY GOVERNMENTS AROUND THE WORLD

Tax breaks have been announced by a lot of countries including China, Germany, and France. This means that businesses in these countries will not be forced to pay taxes amid the quarantine period. Afterwards, those businesses will be given room to pay their taxes in installments.

Nations such as Poland have implemented schemes that allow business owners to deduct 2020 losses from their taxable profits in 2019.

BOTTOM LINE

While other countries cannot boast of doing the same because of insufficient reserves, it may prove impossible for businesses to survive the quarantine without government support. Eventually, governments may have to turn to world financial institutions for help. Failure to do so, may mean that a lot of businesses collapse before the quarantine period is over.