Making decisions about your business

If you are not able to work for a while, it can have a big impact on your business finances. You may have to think about:

• cash flow (how much money is coming into, and going out of, your business)
• how to plan your business finances
• how much money you have available right now to meet your business expenses and to pay any staff (including yourself).

There are things you can do to help maintain your cash flow:

• Make sure outstanding invoices are paid. Take appropriate action against customers who pay late.
• Offer your customers incentives for early payment.
• Start thinking about other sources of income. You may qualify for a grant or emergency funding to help small businesses or members of your trade or profession.
• Make sure you are claiming all the state benefits you are eligible for.
• Check whether you are covered by critical illness insurance or income protection insurance.
• Check if you have insurance included within your business loans. If so, talk to your insurer.

Think carefully before taking on new work during your treatment.

You will need to spend some money to keep your business going. This could be things like paying the phone bill or shipping goods. But other spending could be delayed or reduced for a while. Here are some examples:

• If you do not need your building for a while, you may be able to reach an agreement with your landlord. Or you may be able to rent it to someone else temporarily.
• If you rent a vehicle, you might be able return it.
• If your business involves selling merchandise, look at how you can manage your stock differently.
• You could also talk to your staff about working shorter hours for a while. Or you could reduce spending on non-essential areas of the business.

Before reducing important spending, consider:

• the long-term impact on your business
• relevant terms in any commercial agreements you have in place, or with your landlord or suppliers
• how much it will cost to put those resources back in place when you are ready.

If you are worried about paying your tax on time, it is important to contact HM Revenue and Customs (HMRC) straight away. If you do not contact HMRC and do not pay on time, you may have to pay interest and fines.

If you do not think you will be able to pay your tax in full on time, call the HMRC Business Payment Support Service on 0300 200 3835. You should only call this number before the payment deadline.

If you miss the deadline and receive a letter asking for payment, you must contact the HMRC office that sent it. You will find the contact details on the letter.

Macmillan cannot advise you on business debt and finances, but we can provide information about personal money matters.

If you are worried about paying any business bills or debts, you can contact the following:

• In England, Scotland and Wales you can get free, confidential advice and help from Business Debtline or Citizens Advice.
• In Northern Ireland you can get free advice from Advice NI.

You may already have a bookkeeper or accountant. They can help you keep your finances under control while you take some time off. If you do not have this kind of help, it might be a good idea to get it.

A good accountant may save you more money than you pay them. It might also be helpful to hire someone to send out your invoices and chase payments.

One of the best ways to find an accountant or bookkeeper is through personal recommendations. Ask your neighbours, friends and business contacts. Your local Chamber of Commerce or small business group can also give you a list of providers.

The Register of Statutory Auditors lists accountancy firms that are approved to prepare and audit financial accounts.

If you are a member of a professional body, they might have a fund to help members who are dealing with health problems.

If you need to work fewer hours because of cancer and its treatment, these tips may help you to manage your workload:

Deciding to give up your business is a big step. There are practical and legal things to think about.

Even if you are sure that closing your business is the right decision, it can be difficult to make such a big change to your life. Emotional support is available to help you cope. You can call the Macmillan Support Line on 0808 808 0000.

Some people make the decision to stop working completely when they are diagnosed with cancer.

If you decide to close your business, speak to a financial adviser. Take the time to think through your options. You can:

• contact one of Macmillan’s money advisors
• or go to the Personal Finance Society (PFS) website to search for a financial adviser.

Depending on your situation, you may be able to sell the business or transfer the ownership.

Some people may wish to continue their business. But despite their best efforts, it may start to fail. If you know your business is failing, you may want to close it down yourself before you are forced to.

It may take months to close a business fully. You will need to think carefully about the effect this will have on your finances. Consider the money you will get from other sources, such as a pension, savings, shares or benefits. Macmillan’s money advisers can help with this.

If you try to keep your business going but it continues to fail, there are many different outcomes to consider.

• If you have a limited company that owes suppliers or lenders money it cannot pay, it may be forced into insolvency. An appointed person (a liquidator) will take control of your business. They will sell the assets to pay the debts. This process is called winding up.
• If you are a sole trader or part of a partnership, you can be forced into bankruptcy. In Scotland, this is called sequestration.
• If your business is struggling, you can get free and confidential advice from Business Debtline if you live in England, Wales and Scotland. If you live in Northern Ireland, AdviceNI runs a free debt advice service. 

Writing a plan that outlines everything you need to do can help you protect your personal assets and reputation.

Your plan should include the following steps:

• Collect all money owed to you. You could offer a discount for immediate payment. Try to do this before you tell your customers or clients that you will be closing your business. You may find it difficult to recover debts after.
• Sell any remaining stock. You could consider a clearance sale.
• Tell your creditors, including suppliers, banks and anyone else you owe money.
• Tell your customers and deal with any outstanding obligations. Return payments for products not delivered or services not provided. If you cannot fulfil a contract, you may be able to claim on your business or professional insurance.
• If you are renting property, give your landlord the agreed amount of notice to end your lease.
• Give notice to any employees and follow regulations to ensure they are treated fairly.
• Pay your company debts as far as possible. A financial adviser can talk to you about the best way to do this to protect yourself.

If you are a sole trader, you must inform HM Revenue & Customs (HMRC) straight away that you are closing. This may also help your finances.  

If your income will be lower, you may be able to reduce your tax payments. There is information about paying tax when you stop trading at gov.uk

If you are trading as a limited company, the process of closing your business will depend on whether you can pay your company debts. While your company is being wound up (formally closed), it must still file and pay tax returns. 

Nibusinessinfo has useful information for businesses in Northern Ireland.

It is important to speak to a financial adviser to make sure you follow the correct process. This can be different depending on whether you are a sole trader, a partner in a business or a director of a limited company.

If you are registered for VAT or employ staff, you will have extra responsibilities. This may include making redundancies.

• In England, Scotland and Wales, Jobcentre Plus and gov.uk can advise you if you need to make redundancies.
• In Northern Ireland, visit nibusinessinfo.co.uk or contact the Labour Relations Agency.

It is a good idea to ask a professional, such as an accountant, to advise you. Or speak to a Macmillan money adviser on 0808 808 0000.

Deciding to give up your business is a big step. If work has been an important part of your life, it can be difficult to adjust. 

It may help to talk to someone about your feelings. This could be a family member or a friend. 

Some people find it easier to talk to a counsellor. You may be able to contact a counsellor through the hospital, your GP, or a cancer support group.

The Macmillan support line is open every day from 8am to 8pm. Call for free on 0808 808 0000

You could get free or low-cost information about work and business from:

• your local council
• your local Jobcentre Plus in England, Scotland and Wales, or your local Social Security or Jobs and Benefits office in Northern Ireland
• disability support organisations
• your local Law Centre
• your local Citizens Advice
• the Money and Pensions Service
• a financial adviser or your bank
• your chamber of commerce or other local business networks
• your trade union or professional association, if you belong to one
• GOV.UK if you live in England, Scotland or Wales
• nidirect.gov.uk if you live in Northern Ireland.

If you have professional advisers, such as an accountant or a solicitor, ask for their guidance.