Skip to content
  • Events
  • About Us
    • History
    • Our People
    • Corporate Social Responsibilities
  • OneClick
  • Our Offices
    • Bury St Edmunds
    • Cambridge
    • Huntingdon
    • Ipswich
    • London
    • Norwich
    • Saxmundham
  • Speak to an advisor
  • Services
    • Specialist services
      • Corporate Finance
        • Business Acquisitions
        • Business Sales and Valuations
        • Debt & Equity Advisory
        • Employee Ownership Trusts
        • Management Buy Outs &
          Management Buy Ins
      • Forensic Accounting
      • Business Advice and Restructuring
      • Tax Advice & Planning
        • Inheritance Tax, Trusts & Estates
        • Large Corporate Tax
        • Owner Managed Business
        • Private Client
        • Residence & Domicile Taxation
        • VAT Advice
      • Insolvency & Business Recovery
    • General services
      • Accountancy Services
        • Bookkeeping
        • Business Outsourcing
        • Payroll
      • Audit & Assurance
      • International Business Support
      • Digital Accounting Software
      • Tailored Finance Function
  • Sectors
      • Academies and Education
      • Agriculture & Landed Estates
      • Charities & Not-For-Profit
      • Leisure and Tourism
      • Local Authority Trading Companies
      • Manufacturing and Engineering
      • Medical and Healthcare
      • Pensions
      • Professional Firms
      • Property Development and Construction
      • Technology and Innovation
      • Transport and Logistics
  • Careers
    • Vacancies
    • Accounting apprenticeships
    • Work Experience
  • Insights & Resources
  • Case Studies
  • Events
  • About Us
    • Our People
    • History
    • Corporate Social Responsibilities
  • OneClick
  • Our Offices
    • Bury St Edmunds
    • Cambridge
    • Huntingdon
    • Ipswich
    • London
    • Norwich
    • Saxmundham
  • Contact Us
Home Insights Challenges to Businesses as we come out of the Pandemic

Challenges to Businesses as we come out of the Pandemic

It is a fact that every single business has been challenged by trading during the pandemic and there remain considerable challenges as we return to ‘normality’. Many businesses have, of course, successfully adapted to changing trading conditions, demonstrating incredible resourcefulness, and we have seen illustrations of that throughout all sectors of our client base.

Share:

Link copied

It is a fact that every single business has been challenged by trading during the pandemic and there remain considerable challenges as we return to ‘normality’. Many businesses have, of course, successfully adapted to changing trading conditions, demonstrating incredible resourcefulness, and we have seen illustrations of that throughout all sectors of our client base.

The unprecedented support provided in the form of the furlough scheme, business rates support, deferment of HMRC liabilities, CBILS and ‘Bounce Back’ loans have undoubtedly ensured that many businesses are in a position now to take advantage of the easing of lockdown restrictions.  Some predictions are that during the first half of 2022 the economy will be back to pre-Covid levels of activity and this will be driven by pent-up consumer demand as life begins to return to normality.

However, it is also the case that many businesses will be emerging from lock down and entering the new trading period with additional debt burdens and other challenges. The deferment of liability that was available and having taken on CBILS and Bounce Back loans will mean that many businesses are carrying additional debt and they may also be facing a changed market that has developed throughout lockdown.

It will therefore be important to try and understand the financial circumstances of the businesses that you are going to be trading with as we emerge from lockdown and the measures of support are removed. Throughout lockdown there has, to all intents and purposes, been a stay in the ability of businesses to issue winding up petitions and this has now been extended until 30 June 2021 so there may be a flurry of court activity as soon as the restriction is removed.

The position that HMRC takes will also be interesting.  Currently HMRC are providing a lot of assistance to businesses and our experience is that Time to Pay arrangements are fairly readily accessible over as much as a 24 month period, representing a significant shift from the pre-Covid position. We have even heard of a 5 year agreement being reached.

But combine that with the fact that there is an enormous government debt to repay and that HMRC have regained preferential status as a creditor in insolvency proceedings, I cannot see that HMRC’s compliant position will last for too long.

Sign up to our E+ Newsletter

Register here to receive updates on changes in the tax, investment and accounting world as they affect you and your business.

I would like to receive
This field is for validation purposes and should be left unchanged.

  • Services
  • Accountancy Services
  • Audit & Assurance
  • Business Advice and Restructuring
  • Corporate Finance
  • Digital Accounting Software
  • Forensic Accounting
  • Insolvency & Business Recovery
  • International Business Support
  • Tax Advice & Planning
  • Sectors
  • Academies and Education
  • Agriculture & Landed Estates
  • Charities & Not-For-Profit
  • Leisure and Tourism
  • Local Authority Trading Companies
  • Manufacturing and Engineering
  • Medical and Healthcare
  • Property Development and Construction
  • Professional Firms
  • Pensions
  • Technology and Innovation
  • Transport and Logistics
  • About Us
  • Our People
  • Careers
  • Vacancies
  • Our Offices
  • Bury St Edmunds
  • Cambridge
  • Huntingdon
  • Ipswich
  • London
  • Norwich
  • Saxmundham
  • Website Ts & Cs
  • Privacy Policy
  • Disclaimer
  • Accessibility
  • Sitemap
  • Cookies Policy
  • Partners
  • Engagement Ts & Cs

© 2025 Ensors Accountants LLP - All Rights Reserved

Website by StrategiQ

  • Services chevron-right
    • chevron-right Back
    • Specialist services chevron-right
    • Corporate Finance chevron-right
      • chevron-right Back
      • Business Acquisitions chevron-right
      • Business Sales and Valuations chevron-right
      • Debt & Equity Advisory chevron-right
      • Employee Ownership Trusts chevron-right
      • Management Buy Outs &
        Management Buy Ins chevron-right
    • Forensic Accounting chevron-right
    • Business Advice and Restructuring chevron-right
    • Tax Advice & Planning chevron-right
      • chevron-right Back
      • Inheritance Tax, Trusts & Estates chevron-right
      • Large Corporate Tax chevron-right
      • Owner Managed Business chevron-right
      • Private Client chevron-right
      • Residence & Domicile Taxation chevron-right
      • VAT Advice chevron-right
    • Insolvency & Business Recovery chevron-right
    • General services chevron-right
    • Accountancy Services chevron-right
      • chevron-right Back
      • Bookkeeping chevron-right
      • Business Outsourcing chevron-right
      • Payroll chevron-right
    • Audit & Assurance chevron-right
    • International Business Support chevron-right
    • Digital Accounting Software chevron-right
    • Tailored Finance Function chevron-right
  • Sectors chevron-right
    • chevron-right Back
    • Empty chevron-right
    • Academies and Education chevron-right
    • Agriculture & Landed Estates chevron-right
    • Charities & Not-For-Profit chevron-right
    • Leisure and Tourism chevron-right
    • Local Authority Trading Companies chevron-right
    • Manufacturing and Engineering chevron-right
    • Empty chevron-right
    • Medical and Healthcare chevron-right
    • Pensions chevron-right
    • Professional Firms chevron-right
    • Property Development and Construction chevron-right
    • Technology and Innovation chevron-right
    • Transport and Logistics chevron-right
  • Careers chevron-right
    • chevron-right Back
    • Vacancies chevron-right
    • Accounting apprenticeships chevron-right
    • Work Experience chevron-right
  • Insights & Resources chevron-right
  • Case Studies chevron-right
  • Events chevron-right
  • About Us chevron-right
    • chevron-right Back
    • Our People chevron-right
    • History chevron-right
    • Corporate Social Responsibilities chevron-right
  • OneClick chevron-right
  • Our Offices chevron-right
    • chevron-right Back
    • Bury St Edmunds chevron-right
    • Cambridge chevron-right
    • Huntingdon chevron-right
    • Ipswich chevron-right
    • London chevron-right
    • Norwich chevron-right
    • Saxmundham chevron-right
  • Contact Us chevron-right