During these unprecedented times, the government have announced a variety of different schemes to help businesses, one of which is a joint initiative with Companies House to allow businesses to “prioritise managing the impact of coronavirus”.
There are approximately 4.3 million businesses on the Companies House register, and all companies must submit their accounts and reports each year. Under normal circumstances, companies that file accounts late are issued with an automatic penalty.
As part of the agreed measures, companies can now apply before their filing date, citing COVID-19, for a three month extension to file their accounts. Applications can be made through a fast-track online system following which companies will be granted an automatic and immediate extension. Any such extension will not change the due dates of the companies future accounts.
It is worth noting that companies that have already extended their filing deadline, or shortened their accounting reference period, may not be eligible for an extension.
Companies House Chief Executive, Louise Smith, commented on the scheme to say “We recognise that these are uncertain times for businesses… by easing the burden, we can help businesses through this period and enable them to thrive in the future. I would encourage companies who believe they would benefit from this new flexibility to make an application in good time.”
The government continues to work closely with company representative bodies to look at solutions for the impact COVID-19 may have on other areas of business. Read our blog on companies’ ability to hold Annual General Meetings here
If you have any queries or would like advice in relation to the above scheme, or in regards to any proposed alteration of your current loan agreement and/or additional security to be taken, please contact Gwen Godfrey or Katie Layton or get in touch with your usual contact at DMH Stallard LLP.