- On 25 June 2020, the Corporate Insolvency and Governance Bill received royal assent and is now an Act.
- The measures detailed in this Act are aimed at relieving the burden on businesses during the coronavirus pandemic and enable them to put more focus on the survival of their business.
- Some of the measures in the Act came into effect immediately on Friday 26 June 2020 while others came into effect on Saturday 27 June 2020 when the secondary legislation came into force.
- Government published detailed guidance on the changes that came into effect on Friday 26 June and guidance on the changes that came into effect on Saturday 27 June.
Corporate Insolvency and Governance Act 2020
Changes for public companies
- For public limited companies (PLCs) and Societas Europaea (SEs) with filing deadlines falling between 26 March 2020 and 29 September 2020, HMRC will extend the deadline to the earlier of:
- 30 September 2020
- 12 months from the end of your accounting period
- If a filing deadline fell between 26 March 2020 and 26 June 2020, HMRC will extend the deadline retrospectively.
- If a PLC or SE had a filing deadline between 26 March 2020 and 26 June 2020 and the accounts were filed late, HMRC will review the late filing penalty and be in contact if it’s incorrect.
See the full guidance here.
Temporary changes to Companies House filing requirements
- Businesses registered on Companies House will get an extended time period to file accounts.
- If eligible, HMRC will update the company’s filing deadline automatically. Companies do not need to apply for an extension.
- If a company has already extended their accounts filing deadline, they may not be eligible for an extension.
- Companies will be eligible for a legislative extension if the filing deadline falls on or before 5 April 2021. The deadline will not be extended next year if it falls on or after 6 April 2021.
- If a company’s first accounts cover a period of 12 months or less, and they have not received an extension, the filing deadline will be extended from:
- 9 months to 12 months for private companies
- 6 months to 9 months for public companies
- Under the secondary legislation, companies will receive an automatic extension for the following accounts:
- accounts
- confirmation statement
- event-driven filings (changes to the company)
- mortgage charges
- Businesses registered at Companies House will get more time to file their confirmation statement. The current 14-day deadline will be extended to 42 days.
- Directors will still need to meet their filing obligations with Companies House. Late filing penalties will still be applied if accounts are filed late.
See the full guidance here.
Aspire Business Partnership ("Aspire") provide WK1 with practical and commercially sound advice in relation to all aspects of compliance, business strategy and conflict resolution. WK1 engage Aspire on a retained basis through which Aspire provide WK1 with advice on an ad-hoc basis.
https://www.aspirepartnership.co.uk/News/3470/covid-19-corporate-insolvency-and-governance-bill
