Few people would disagree that Bank Holidays and Royal Weddings are occasions for fun and relaxation; but umbrella companies and other businesses will need to be especially prepared this month if cash flow problems are to be averted. That’s according to professional service firm RMS Tenon, which is reminding entrepreneurs and contractors alike that April consist of only 18 working days after Easter and the Royal Wedding bank holidays are taken into account. Cash-strapped businesses in particular should begin tracking down outstanding invoices immediately, as they are likely to be hit the hardest by the breaks.
The company estimates that a significant number of UK workers (around 15 per cent) will simply take the three days between Easter and the Royal Wedding as annual leave, giving them an overall break from work of eleven days. Many parents also tend to take time off over Easter, with the result that the staff limited companies and umbrella companies rely upon to process their remittances might well not be available.
The statistics are unambiguous – every time there is a bank holiday, British businesses lose around £6 billion worth of productivity. And we can expect this to be considerably worse this month with two bank holidays falling so close to one another.
There will, however, be beneficiaries to the holidays, notably in the hotel, restaurants and retail sectors. Demand for their services is bound to soar this month, with around 43 per cent of Brits planning to take a short break away from home to coincide with the Easter break and the wedding. But the bottom line for umbrella companies is – chase those outstanding invoices today.