Covid-19 – Practical steps to take now to save cash

As the economic impact of the crisis continues to be felt right across the business landscape and home life too, we have set out below a number of practical steps and suggestions to help you save money and preserve cash.  

• Take advantage of 3 month mortgage holiday.  Early last week banks agreed with the Chancellor that they will offer help on mortgages. If keeping up with mortgage payments may be a challenge, or you wish to preserve some cash in light of the current uncertainties, do speak to your bank.
• Speak to lenders about possible capital repayment holidays on finance agreements and personal loans.  Lenders are being fairly accommodating during this time.
• SORN 2^nd cars or vehicle fleet. If you are in the situation where both family cars are parked up you could make a SORN application for the second car which will give you a rebate on your road tax. This could also relate to a business setting if you have had to shut down your business and park up a fleet of vehicles there may be a larger saving. Rebates could generate some cash inflow at a time when you need every pound you can get.
• Likewise downgrade car/vehicle insurance to fire and theft only. If your vehicle(s) are not running, you may also consider phoning your car insurance company to downgrade cover to fire and theft for now, and receive a partial refund on your insurance. You will of course need to fully insure your vehicle and tax when the lock down has been lifted.
• Vehicle MOTs have been extended for 6 months from due date.
• Cancel those unused subscriptions now. Use the time to review any ongoing subscriptions you may have for services that are not currently being used such as the National Trust, kids activity groups not being used, or any other non-essential activities.
• Take advantage of credit card balance transfers to 0% funders – Santander, Virgin Money and Sainsburys all offering this at present.
• Council Tax (personally) – spread tax across 12 months instead of 10 months which most people are on.

Cybercrime

And finally, please take note that unfortunately fraudsters are taking advantage of fear and uncertainty to attempt a variety of scams and cybercrime.  Please be vigilant.  We have been notified of coronavirus-themed phishing emails to trick people into opening malicious attachments or revealing sensitive personal and financial details.  Please always be aware of cybercrime – our IT department can guide you should you have any difficulties in this area.

Financial aid for self-employed

Self-employed workers are set to be offered a package of support from the government. We will update our Fact Sheet and follow up with all tomorrow following Chancellor Rishi Sunak’s announcement expected later today (26.03.20).  Following this statement we will be updating our Coronavirus Factsheet and posting tomorrow.

March 26, 2020

By williamduncan

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