CORONAVIRUS - 12.04.2021

Keeping up with coronavirus changes

The pandemic has seen rules changed, deadlines relaxed and wide-ranging alterations to annual to-do lists with which you’re so familiar. What’s the current position?

Filing deadlines

When the Companies House filing deadlines were extended at the start of the pandemic, they were given an expiry date of 5 April 2021. As a reminder, extensions apply to:

  • company accounts: a private company has twelve months from its accounting reference date to file its accounts (instead of the usual nine)
  • confirmation statements: if a company’s confirmation date falls on/before 5 April 2021, the confirmation statement must be filed within 42 days of the confirmation date
  • notification of changes to registered details about directors, secretaries or persons of significant control, the registered office address or the location of information kept for inspection: file within 42 days of change; and
  • the particulars of a mortgage or charge: file within 31 days of creation.

Tip. Use Companies House’s electronic filing or new upload service if possible because paper filings take longer than usual to process, and its branches are closed during the pandemic. Check your company’s filing history to make sure your documents have been accepted or sign up to the “Follow” service to receive instant notifications. Tip. Make sure you apply for an extension before your filing deadline. If you file your accounts late without an extension being agreed in advance, the usual rules apply meaning that you’ll get an automatic late filing penalty which is notoriously difficult to get overturned. Tip. Many companies are taking advantage of the temporary Companies House three-month filing extension which means that the accounts and corporation tax (CT) return will be due on the same day. As the CT return can only be prepared once the accounts are finalised, there’s a greater risk that the CT filing deadline will be missed.

Tax returns

HMRC has confirmed that coronavirus is a “reasonable excuse” for the late filing of tax returns (including CT and VAT). If you are appealing against a late filing penalty on behalf of your company, make sure you explain how the virus impacted the company, i.e. you need to have a valid reason rather than “because of coronavirus”.

VAT. Businesses can spread previously deferred VAT payments over twelve months starting from 31 March 2021. Taxpayers whose self-assessment bill for 31 January is no more than £30,000 will be allowed more time to pay. Both deferral schemes require you to apply to HMRC.

Winding up/evictions

With so many businesses struggling to stay afloat, the conditions required to put a company into liquidation have been restricted to stop them being wound up because of debts caused by the pandemic. This means that statutory demands served between 1 March 2020 and 31 March 2021 cannot form the basis of a winding up petition and winding up petitions presented between 27 April and 31 March 2021 based on other grounds will not be granted if the company’s financial difficulties were caused by coronavirus. The suspension of the wrongful trading provisions has also been revived temporarily and the government extended the moratorium on commercial evictions further, this time until 31 March 2021.

Get organised

These concessions are welcome, but the end dates vary. Missing some of these, like the end of the evictions moratorium or suspension of wrongful trading provisions, could have serious consequences for a company and its directors.

Make sure you apply for an extension before your filing deadline. If you file your accounts late without an extension being agreed in advance, the usual rules apply meaning that you’ll get an automatic late filing penalty. Businesses can spread previously deferred VAT payments over twelve months starting from 31 March 2021.

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