info@inn-control.co.uk
Blog
Coronavirus insolvency measures extended until the end of June
19 Apr
To help businesses with the ongoing impact of the pandemic the Government has decided to extend measures in the Corporate Insolvency and Governance Act (the Act) to protect struggling companies.
The extension to the measures introduced in the Act, includes an extension of the suspension of liability for wrongful trading from 30 April 2021 to 30 June 2021, as well as respite for those facing winding up petitions during the same period.
Struggling businesses and their owners will welcome the extension to the removal of the threat of personal liability arising from wrongful trading, as it may give those facing the prospect of insolvency time to turn their fortunes around without a personal penalty if the company fails.
Businesses will also still be able to take advantage of the COVID-19 moratorium until the end of June, which provides a company with breathing space from creditor enforcement to enable it to enact a rescue plan.
A company may enter into a moratorium if it has been subject to an insolvency procedure in the previous 12 months.
The moratorium also covers waiving the requirement that a company subject to a winding up petition must obtain a court order and allows certain companies carrying on regulated financial activities, who would usually be ineligible, to seek the same support.
The extension to the Act also means that termination clauses continue to be prohibited. This will prevent suppliers from ceasing their supply or asking for additional payments, while a company is going through a rescue process. Small suppliers remain exempted from the obligation to supply until 30 June 2021.
In response to the extension, R3, the Insolvency and restructuring trade body, is calling on directors of COVID-hit businesses to make the most of the time granted by the Government’s extension to restructure and rebuild.
It says that business owners should use this additional time to put plans in place for when the Government support ends with the help of a professional adviser, such as their accountant, to consider the options open to them to address their financial issues.
Archive
- I have been sent a nudge letter by HMRC – What should I do next?
- Received a CJRS compliance check? Act now!
- MTD for Income Tax delayed – What it means for you
- Buying a business – Top tips to secure the best deal
- Six steps to secure finance for your business
- Managing business costs – what the energy and supply crisis may mean for your company
- Kickstart Scheme and apprenticeship incentives extended
- Final SEISS deadline – Submit your claim by 30th September!
- SME confidence is on the rise as employers make plans to expand their workforce
- Minimum wage non-payment excuses ‘outrageous’
- Couples could be missing out on tax breaks
- New weapons in the war on cybercrime
- Beware of rising house prices increasing Inheritance Tax liability
- Frustrated SMEs turning to unsecured loans to grow businesses
- How will the National Insurance and dividend tax increases affect me?
- Beware of exceeding your pension pot allowance
- Draft legislation published for next Finance Bill
- Super-deduction gives businesses confidence to grow
- Taxman says help available as debt collection resumes
- SMEs optimistic and frustrated as economy set to thrive
- HMRC auto-correcting 2020-21 SEISS tax returns
- The fifth round of the Self-Employment Income Support Scheme (SEISS) is now open
- Government updates self-isolation rules with limited exemptions for 16 sectors
- Freedom Day – What does it mean for businesses?
- Time to prepare for Corporation Tax changes
- Making Tax Digital for Income Tax – Get ready now!
- Points-based system for HMRC late payment penalties
- Take account of your year-end tax liabilities
- Director’s ban a warning to others to keep proper company records
- Don’t miss the deadline for renewing tax credits
- A helping hand with the cost of children’s summer activities
- CJRS – Upcoming changes to payments and the furlough scheme
- Preparing for the end of the Stamp Duty Holiday
- Government extends ban on commercial evictions until March 2022
- Fifth round of the Self-Employment Income Support Scheme to launch in late July
- Businesses can still access the Recovery Loan Scheme
- Make sure to include SEISS grants on your next tax returns
- Beware of the HMRC scammers, but ignoring calls can be costly
- Carry back scheme brings welcome relief for business
- New recommendations in sweeping CGT review
- Tax saving strategies for landlords
- Bank of England and CBI expect the biggest rise in economy for decades
- Financial Reporting: GRC, Governance Risk and Compliance Tools
- HMRC unveils penalty regime for VAT deferral scheme
- COVID forces businesses to change direction
- Workers can continue to claim home working tax allowance in the new tax year
- Reimbursed expenses – What you need to know
- HMRC to tackle SEISS abuse with new penalty regime
- New Debt Respite Scheme launched
- National Insurance relief launches for employers that hire veterans
- Parents missing out on tax-free childcare bonus of up to £500
- Applications for SME Brexit Support Fund underway
- Thousands of cases of COVID-related fraud and cyber-crime are being investigated
- Majority of SME owners have loaned personal money to their business during the pandemic
- Coronavirus insolvency measures extended until the end of June
- Inheritance tax reporting to be simplified
- HMRC contacts self-employed individuals who could be eligible for fourth SEISS grant
- Furlough scheme guidance updated
- New claims needed to continue receiving working from home tax relief
- The Best Cloud Accounting Software For Pubs
- Coronavirus Restart Grant
- Student loan thresholds to rise from 6 April 2021
- HMRC updates tax rules and calculations on ultra-low emission vehicles
- Almost two-fifths of small businesses are looking to trade overseas
- National Living Wage and National Minimum Wage rates to increase from 1 April
- Business rates review report delayed
- Vaccine rollout prompts SME optimism about prospects for 2021
- Budget 2021
- Self-Assessment late payment penalties relaxed but interest still accrues
- Business insurance rates are on the rise
- The advantages of electric vehicle salary sacrifice schemes
- Consultations on future of Companies House could see filing deadlines slashed
- Voluntary and compulsory strike-off processes paused in response to national lockdown
- Don’t forget to claim home working tax relief
- Large and medium-sized businesses need to be ready for IR35
- The VAT Reverse Charge for the Construction Industry Scheme – Are you ready?
- Basic rate taxpayers could face ‘high income’ child benefit charge
- The VAT Deferral New Payment Scheme
- COVID-19 Bounce Back Loan repayment period extended
- Calculating Coronavirus Job Retention Scheme claims for annually paid directors
- HM Revenue & Customs waives late filing penalties for Self-Assessment taxpayers who file by 28 February – but payment deadline remains
- Requests for exemption from publication of furlough claims must be submitted by Monday 25 January
- Only a few days are left to submit applications for the third SEISS grant
- What could Budget 2021 have in store?
- HM Revenue & Customs increases the threshold for Self-Assessment online payment plan service to £30,000
- Independent commission argues against annual wealth tax but advocates a one-off charge
- Could the Government be about to launch a new permanent state-backed small business loan scheme?
- HMRC issues new warning over lockdown fraudsters
- FSB proposes move to turn Covid emergency debt into shared ownership schemes
- VAT – Post-Brexit arrangements
- Insurance industry to pay out on COVID-19 business interruption claims
- Are you making full use of the Government’s COVID-19 financial support package?
- Government extends agricultural visa scheme to fill jobs left by EU workers
- Brexit: UK Trader Scheme to support movement of goods between Britain and Northern Ireland
- Coronavirus furlough and loan schemes further extended
- Brexit trade deal negotiations continue as businesses warned to prepare for a ‘no deal’ scenario
- VAT under the Northern Ireland Protocol
- Northern Ireland customs duty arrangements confirmed
- Government launches new export finance guarantee scheme
- How can your business prepare for customs and VAT after Brexit?
