Financial planning for the pandemic

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  Posted by: The Probe      23rd April 2020

The coronavirus outbreak has shaken many industries, economies and lives of countless people down to the very core. Indeed, we are living in unprecedented times, and what sounded like science fiction mere weeks ago has become a reality.

In the UK we have experienced an essential lock down, and everything from public places to schools have been closed by the pandemic. As such, it’s little surprise that many dental practices and dental professionals have been impacted too. This has revealed the necessity for certain steps both now and in the future, especially if you want to safeguard yourself, and your business.

Help for the self-employed

Dentists are unique in that many of them are deemed self-employed by the Government. During the beginning of the coronavirus outbreak, no help was offered to those that were self-employed in terms of supporting their income, especially for those who already earned over £50,000 per annum. Of course, by the time this is published that might have changed, but the best way to move forwards with this and protect your income from other potential interruptions in the future is to look at getting Income Protection Insurance.

This type of policy protects a portion of your wages in the event that certain conditions are met and you are then unable to work for a period of time. Though these conditions are usually accidents or illness, it’s likely that certain policies will be rewritten following this outbreak to protect against this sort of event as well.

Currently, there are still a number of things that self-employed professionals should be aware of that the Government have made accessible. The first of these is the fact that many will be able to take advantage of mortgage payment deferrals and self-tax assessment deferrals, which should be providing some temporary relief. This situation is changing all of the time, however, and it could well be that relief for self-employed individuals is suggested before this article is published and that better measures have been put in place that dentists can benefit from.

Help for small businesses

Unless part of a corporate, it’s generally assumed that dental practices will fall under the umbrella of small businesses, and therefore be eligible for certain reliefs and assistance. However, there are caveats attached to this, so it’s a good idea to look into these before making an application.

To qualify for the CBIL (Coronavirus Interruption Business Loan) your practice must:

 

  • Be UK based with business activity, and make no more than £45 million a year

 

  • Operate within an eligible industrial sector

 

  • Confirm that it hasn’t received £200,000 of state aid over the current and previous two fiscal financial years

 

  • Be unable to meet a lender’s normal lending requirements for a fully commercial loan or other facility, but would be considered viable for the long term.

 

Of course, looking at these points alone it can be difficult to decipher what’s going on. If your practice offers a mixture of both NHS and private services, does this still make you eligible? The waters are murky, but it does seem that practices that are receiving NHS support are not viable for the receipt of this loan. Again, this may very well change in the near future, but as the Government’s response to this crisis is very reactionary, this is something that professionals should be checking on a daily basis if they want to keep on top of the developing situation.

Guidance now and in the future

As you can see, it’s not easy to summarise or even fully understand the impact the virus has had on the dental industry and the associated financial assets and insurances tied to it. Added to all this is the fact that some insurance products aren’t paying out in the current situation, highlighting the importance of getting the right policy. Therefore, the best thing to do is to seek the help of an Independent Financial Adviser and to review your finances and all the policies in place.

The award-winning team at money4dentists are well placed to help with all of your enquiries during and following the coronavirus pandemic. By giving direct, clear guidance about Insurance Policies, Income Protection, Financial Planning, Savings, and more, the team can help you achieve any goals you have set for the future as well as help you navigate through the confusion that has occurred as a result of the COVID-19 pandemic.

It’s always best to get advice

Although the coronavirus is a lifetime first for most people, there’s every chance that other rapidly changing scenarios will occur in the future. By enlisting the help of Independent Financial Advisers, you can always get the best advice and ensure that you are well protected, armed with knowledge and ready for whatever comes.

 

For more information please call 0845 345 5060 or 0754DENTIST.

Email info@money4dentists.com or visit www.money4dentists.com


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