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Archives for Corona Virus Business Updates

The Recovery Loan Scheme

Business owners can now apply for ongoing access to financial support as they recover and grow following the coronavirus pandemic.

The scheme can be used for any legitimate business purpose, including managing cashflow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes.

The Scheme is scheduled to run until 31 December 2021, subject to review. It is available through a range of lenders and partners accredited by the British Business Bank

If you have already used a Coronavirus Loan Support Scheme, the Recovery Loan Scheme is still open to you.

www.gov.uk/government/news/new-bounce-back-loans-to-launch-today

 

  1. What is The Recovery Loan Scheme?
  • The Recovery Loan Scheme is intended to assist small and medium-sized businesses to access finance up to £10 million per business (maximum £30 million per group).
  • Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts;
  • Term loans and asset finance facilities are available for a minimum of three months to up to six years, with overdrafts and invoice finance available from up to three months to three years.;
  • Unlike the previous Government-backed loan schemes, Coronavirus Business Interruption Loan Scheme (CBIL) and Bounce Back Loan Scheme (BBL) loans, businesses must meet the costs of interest payments and any fees associated with the facility;
  • The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility, although the borrower always remains 100% liable for the debt.

 

  1. What Are The Terms Of The Recovery Loan Scheme?
  • The annual effective rate of interest, upfront fee and other fees cannot be more than 14.99%;
  • Lenders cannot take personal guarantees for facilities of £250,000 or less. Above £250,000the maximum amount that can be covered is capped at a maximum of 20% of the outstanding balance of the facility after the proceeds of business assets have been applied. No personal guarantees can be held over principal private residences.
  • Loan terms will be up to 6 years.
  • No repayments will be due during the first 12 months.

 

  1. Eligibility
  • Your business must:
    • have been affected by Covid-19 – you will need to confirm to the lender that the coronavirus pandemic has had an impact on your ability to operate;
    • be carrying out trading activity in the UK;
    • have a viable business proposition – your lender may disregard (at its discretion) any concerns over your business’ performance over the short to medium term because of the uncertainty and impact of Covid-19;
  • There is no restriction on turnover, meaning your business can access the scheme regardless of what amount of revenue it generates.
  • You will not be eligible if your business is a Bank, a public sector body or a state-funded primary or secondary school

 

  1. How to Apply For the Scheme
  • Find a lender on the British Business Bank website

https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/current-accredited-lenders/

  • Contact a lender to express an interest in applying for the Scheme, and for them to be able to assess your eligibility under their criteria and available finance offered under the Scheme by them;
  • Submit an application
    • Typically you will be asked for supporting information to show evidence that you are able to afford the repayments, most likely in the form of management accounts, business plan, historic accounts and details of assets.
  • Please contact one of our specialists for advice and assistance in preparing your claim

 

  1. What Should I Consider Before Making An Application
  • Fundamentally, this is a loan and requires repayment;
  • When considering how much loan is required, consider carefully the current financial position of your business as well as the impact upon your business of market conditions normalising, or even growing beyond historic trading levels, as the impact of COVID-19 fades.
  • Take into account issues like
    • Does the business need capital investment;
    • What working capital stretches will I encounter as I rebuild levels of stock and work in progress;
    • What impact on my business will my growing debtor book have on available cash;
    • What loan repayments am I already committed to, remembering that any CBIL or BBL loans have either expired or are coming up toward the end of, the 12-month interest and capital holiday;
    • Any deferral of Government or finance based repayments that will need to be taken from working capital
  • You should prepare a (simple) cash and trading forecast to support your assessment, and ensure you have claimed all other reliefs and grants available to you.
  • Barrons are here to help you, please refer to the specialists above or your usual Relationship Manager who will be happy to help.
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The Coronavirus Self-Employment Income Support Scheme – Extension For New (Previously Excluded) & Existing Claimants

In the latest Budget, the Government announced details of who can claim the fourth SEISS grant and the level that claims can will be paid out at. 

Some significant changes have been introduced for the fourth grant, please take a moment to consider them:

 

  1. If You Already Qualified For The Third Grant
  • The fourth SEISS grant will be set at 80% of 3 months’ average trading profits, paid out in a single instalment, capped at £7,500;
  • Your continued eligibility for the scheme will now be based on your submitted 2019 to 2020 tax return;
  • This may affect the amount of the fourth grant which could be higher or lower than previous grants you may have received.
  • You must still continue to meet all historic criteria set under the Scheme.

 

  1. I Have Never Been Eligible For The SEISS Grant Before – Could I Be Now?
  • The fourth grant will take into account 2019 to 2020 tax returns and will be open to those who became self-employed in tax year 2019 to 2020;
  • To be eligible for the fourth grant you must be a self-employed individual or a member of a partnership;
  • You must also have traded in both tax years 2019/20 (and have submitted a tax return by 2nd March 2021) and also in the current tax year 2020/21;
  • Finally you must also be able to declare that you
    • intend to continue to trade; and
    • you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus.
  • PLEASE ENSURE YOU READ through to the end of this update – it is ESSENTIAL READING for new claimants in particular to ensure that you are included in the next tranche of payouts by Government.

 

  1. What Is The Eligibility Period?
  • The eligibility period for the fourth grant is 1 February 2020 to 30th April 2021;

 

  1. When Can I Make A Claim?
  • The online claims service for the fourth grant will be available from late April 2021 until 31 May 2021;
  • If you are eligible, HMRC will contact you in mid-April to give you your personal claim date;
  • This will be the date that you can make your claim from; more details will be published.

 

  1. Do I Need To Report SEISS Grants On My Future Tax Returns?
  • YES, SEISS grants are all taxable.

 

  1. Is There A Fifth Grant?
  • The Government has announced that there will be a fifth and final grant, covering the period May to September 2021;
  • The fifth grant will be worth
    • 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
    • 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%
  • You will be able to claim from late July if you are eligible, details to follow later in the year.

 

  1. New Claimants – The Qualification Process
  • Taxpayers that commenced trade in the 2019/20 tax year are now eligible to make a claim under the Self Employed Income Support Scheme.
  • The Government has set stringent steps to be followed to prevent fraud – unfortunately, the steps leave you open to receiving fraudulent calls so please read and take note of the what follows.
    • With this particular grant HMRC will be writing to you asking you to confirm your identity and prove that you have been trading, before the 4th SEISS grant can be claimed (covering the period Feb to Apr 21) toward the end of April 21;
    • The Revenue have advised that only taxpayers that started trading as self-employed after 5th April 2019 will receive this verification letter, and that only part of that group will be contacted in this way.
  • Once contacted, there is a lengthy process to be undertaken which must be followed. If you are in doubt about the legitimacy of the process or correspondence that you are receiving please contact Tracy tracyc@barrons-bds.com
    • Step 1: Receipt of HMRC’s letter

You should receive, read and respond to the HMRC letter which should arrive between 10 March and mid-April.

  • Step 2: Answer a call from HMRC

Up to two weeks after the letter is sent, an HMRC officer will call the contact number detailed on your 2019/20 tax return.

If the agent’s number (i.e. Barrons) was shown as the contact point HMRC will ask the agent to pass on their client’s telephone number. We would appreciate your forward confirmation to Tracy that we are authorised to release your personal data.

When HMRC call you, this will, unfortunately, be shown as coming from an “unknown number”. When receiving this call, please seek to identify the caller by asking them to provide you with the last 4 digits of your Unique Tax Reference number – there are going to be scam calls the way Government has set up trying to avoid fraud appertaining to them, unfortunately we anticipate many will be targets for being defrauded themselves

HMRC will make only three attempts to call between 8am and 5.30pm. If none of those three attempts are successful you will have failed the pre-verification.

  • Step 3: Supply email address

When you speak to HMRC you will need to confirm or supply your email address, and you must also agree to receive a link to a Dropbox account to that email address.

  • Step 4: Find email from HMRC

You will need to open the email from HMRC that includes the Dropbox link, please monitor your junk folder, as the communication may well file to this folder.

  • Step 5: Digital copies

You will need to make digital copies of a form of your ID (e.g. photo-card driving licence, or current passport) plus three months of your UK business bank statements from 2019/20 (from 6th April 19 to 5th April 2020). This information is needed to demonstrate that the new business has been active in 2019/20.

If the business has been run without a UK bank account HMRC will accept other documents, but you must agree what is acceptable in your call with HMRC.

  • Step 6: Upload documents

You will only have two days to upload the digital copies of your ID and bank documents to the HMRC Dropbox. After two days you will fail the pre-verification.

  • Step 7: Apply for the grant

The online portal to apply for the next SEISS grant will open in late April,

  • We are sorry to advise that tax agents cannot claim SEISS grants on behalf of their clients but we will help however we can.  

 

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Coronavirus Business Interruption Loan Scheme (“CBILS”) – Imminent Closure

The Coronavirus Business Interruption Loan Scheme (CBILS) set to close for applications at the end of March 2021.

If you intend to make an application for a CBILS loan you must ensure that your Bank / chosen financier has lodged your application by 31st March 2021.

If your claim is not acknowledged by the Bank by that date, you will no longer be eligible for the scheme – so there is no time to waste if you intend making a CBILS application.

Please refer to our previous posts concerning the Scheme should you wish to research your potential to benefit from the Scheme, or alternatively follow this link:

https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme

 

  1. What is the Coronavirus Business Interruption Loan Scheme (CBILS)?
  • CBILS is a scheme that can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow;
  • CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance;
  • The scheme provides the lender with a government-backed guarantee potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
  • The borrower always remains 100% liable for the debt.

 

  1. Should I Make An Application Before The Scheme Runs Out?
  • You really do need to consider how the Pandemic has, and still might, affect your business
  • For instance,
    • the Job Retention Scheme ceases at the end of September 2021;
    • there may well be further challenges arising for us all in terms of a further wave or for your industry or business in particular
  • You should consult your current trading patterns and cash projections
    • You really do need to have a minimum rolling 90 day cash forecast in place to review immediate cash needs;
    • Have you (for instance) taken into account that as your turnover builds, your cash may deplete as often customer credit stretches beyond the need to pay employees, key suppliers and day to day running costs – the business could be moving toward recovery yet run out of cash!
    • You must understand how your cash outgoings are to be managed and controlled for whatever duration this Pandemic may impact upon your business, and remember we may well be headed for a long and stressful winter as the economic recession takes its full impact upon demand.

 

  1. What If I have Already Received a Bounce Back Loan (BBL)?
  • You can still apply for a CBIL Loan;
  • Your would need to settle the BBL Loan out of the funds generated from the CIBL.

 

  1. Is The Bounce Back Loan (BBL) Closing Too?
  • Yes – on 31st March 2021.

 

  1. Am I Eligible?
  • Smaller businesses (“SME”) from most sectors can apply for the facility;
  • Your business needs to be
    • UK-based in its business activity;
    • Operate with annual turnover of no more than £45m;
  • You need to be able to demonstrate a viable Borrowing Proposal
    • You must show in your borrowing proposal that were it not for the COVID-19 pandemic, your business would be considered viable by the lender, and for which the lender believes the provision of finance will enable your business to trade out of any short-to-medium term difficulty;

 

  1. Recovery Loan Scheme
  • The Government has announced a replacement loan scheme, the Recovery Loan Scheme, that will be launched on 6th April 2021 and which will close on 31st December 2021;
  • The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close;
  • The finance can be used for any legitimate business purpose, including growth and investment.
  • The government guarantees 80% of the finance to the lender;
  • Full particulars of how to apply for this Scheme and how exactly it will operate and compare to the CBILS Scheme is still to be announced.

 

  1. Need Help To Review Your Cash Position?
  • Please contact us urgently – time is incredibly tight;
  • We have a dedicated team focussed upon Scheme eligibility and the application process led by jasonm@barrons-bds.com 
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Coronavirus – Self Assessment, A Further Update

HMRC announced this week (on Friday 19th February 2021) that Self Assessment customers will not be charged the initial 5% late payment penalty if you pay your tax or make a Time to Pay arrangement by 1‌‌ April 2021.

 

  1. So What Exactly Has Changed?
  • The deadlines to file your tax returns have not changed, but a concession has been introduced to extend by one month the time you have to file your return without a fine being imposed;
  • Also, because of the impact of COVID 19 HMRC is giving taxpayers more time to pay or set up a payment plan
  • Payment plans or payments in full must be in place by midnight on 1‌‌ April to avoid a late payment penalty

 

  1. So How Do I Set Up A Time to Pay Arrangement?
  • You must liaise directly with HRMC, your agent (Barrons) cannot do this for you by decree;
  • The self-serve Time to Pay facility allows you to spread the cost of your tax liabilities into monthly instalments until January‌‌ 2022;
  • You can set up a payment plan online, on GOV‌‌.UK.

 

  1. What If I Still Cannot Meet My Repayments Using A Time to Pay Arrangement?
  • HMRC has stated that it recognises the pressure affecting taxpayers due to the pandemic;
  • If you are worried about paying your tax HMRC advise that you should contact them for help and support on 0300‌‌ 200‌‌ 3822;
  • We would be happy to discuss any need to contact HMRC before liaising with HMRC directly so that we can help you prepare – please contact lisag@barrons-bds.com

 

  1. What About Late Filing Penalties?
  • If you have yet to file your tax return you should do so‌‌ by‌‌ 28‌‌‌‌ February to avoid a late filing penalty.

 

  1. Can I Still Be Charged Interest On Late Payment?
  • If you have not paid your Self Assessment tax bill by 31‌‌ ‌January 2021; then interest will be charged from 1‌‌ ‌February on any outstanding liabilities.

 

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Coronavirus – VAT Deferred Due To Coronavirus

HMRC have announced the launch date for their new VAT deferral payment scheme.

We detail below how to make use of the scheme and the other options that you currently have to settle the liability.

 

  1. What Are My Options?

If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:

  • pay the deferred VAT payment in full on or before 31 March 2021;
  • opt into the VAT deferral payment scheme using the online service between 23 February and 21 June 2021;
  • contact HMRC by 30 June 2020 if you need more help to pay

 

  1. What Do I Gain From Opting In?
  • Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free
  • You select the number of instalments from 2 to 11 equal monthly payments

 

  1. Am I Eligible For The Scheme?
  • To use this scheme you must:
    • Still have deferred VAT to pay;
    • be up to date with your VAT returns;
    • join by 21 June 2021;
    • pay the first instalment when you opt in;
    • pay your instalments by Direct Debit

 

  1. What If I Want To Opt In To The New Payment Scheme?
  • The VAT deferral new payment scheme will be open from 23 February up to and including 21 June 2021
    • You must opt in yourself, we cannot do this for you
  • If you are on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, you will be invited to join the new payment scheme later in March 2021

 

  1. Instalments Options available
  • The month you decide to join the scheme will determine the maximum number of instalments that are available to you;
  • If you join the scheme in March you’ll be able to pay your deferred VAT in 11 instalments or fewer.
  • The number of instalments reduces by one for every month that passes from the launch date of the scheme

 

  1. What If I Have Other Time To Pay Arrangements?
  • You can still have a time to pay arrangement for other HMRC debts and outstanding tax.

 

  1. Can I Prepare Now To Opt In To The New Payment Scheme?
  • You will need to use your own Government Gateway account; so if you have not set up one it is time to do so on-line https://www.gov.uk/log-in-register-hmrc-online-services
  • submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so
  • correct errors on your VAT returns as soon as possible
  • make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid
  • consider the number of equal instalments you’ll need, from 2 to 11 months

 

  1. What If I Am Not Able To Pay My Deferred VAT
  • If you are unable to pay the VAT due and need additional time to pay, or are unable to use the online service, you should contact HMRC before the payment is due.
  • For help, either
    • Contact Lisa Garfinkle (lisag@barrons-bds.com) at Barrons who will be able to assist you and contact HMRC on your behalf if you prefer, or
    • Contact HMRC direct by
      • Using the GOV‌‌.UK website and search for ‘If you cannot pay your tax bill on time’, or
      • Call 0800 024 1222.
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Coronavirus – Self Assessment Update

HMRC has announced today that there will be no penalties for filing the 2019-20 Self Assessment Tax Return late, so long as they are filed online by 28‌‌ ‌February.

 

You will still need to pay your Self Assessment tax bill by 31‌‌ ‌January 2021; if you fail to do so then

  1. Interest will be charged from 1‌‌ ‌February on any outstanding liabilities, and
  2. Other late payment penalties will continue to apply for payments made after 28th February 2021.

 

We are encouraging clients who have not yet filed to do so by 31‌‌ ‌January 2021, if possible, especially if you

  1. Hold an insurance policy that requires filing by 31st January of each year;
  2. You wish to take advantage of the online Time to Pay arrangements that HMRC have made which require you to file your 2019-20 tax return before you can organise setting up a time to pay arrangement.
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The Coronavirus Self-Employment Income Support Scheme – Deadline Approaches For Claiming Third SEISS Grant

Claims for the third SEISS grant must be submitted by 29 January 2021. 

The timing of the deadline for claims for the third Self Employment Income Support Scheme (SEISS) grant is perhaps unfortunate, clashing as it does with the self assessment filing deadline.

 Some additional considerations were introduced for the third grant, please take a moment to consider them:

 

  1. The “Significant Reduction In Trading Profits” test
  • To be eligible for the Grant you have to be able to demonstrate a “significant reduction in trading profits” through your business being adversely affected by Coronavirus;
  • When assessing whether there has been a significant reduction in trading profits, the comparison period is not specified in HMRC’s guidance; you can use
    • the previous year; or
    • an average of say the last three years trading profits; or
    • a reduction against an earlier forecast for the relevant basis period
  • In considering whether you are eligible for the grant, you do not need to take into account the first and second SEISS grants, nor any other COVID-19 government support payments received.

 

  1. What Is The Eligibility Period?
  • The eligibility period for the third grant is 1 November 2020 to 31 January 2021;

 

  1. What If I Have More Than One Trade?
  • If you operate more than one trade it is sufficient to show that one of the trades has suffered reduced activity, capacity, or demand, or has been temporarily unable to operate since 1 November 2020;
  • You should be able to demonstrate that this will cause a significant reduction in the profits compared with what they would otherwise have expected for that trade;
  • You do not have to consider upon all trades operated together.

 

  1. Do I Need To Report SEISS Grants On My Future Tax Returns?
  • YES.
  • SEISS grants are all taxable in the 2020/21 tax year, whatever date you prepare accounts to.
  • No element of the SEISS grants should be reported in the 2019/20 self assessment tax returns that are due to be filed by 31 January 2021;

 

  1. Is There A Fourth Grant?
  • The Government has announced that there will be a fourth grant, covering the period February to April 2021.
  • The conditions for the fourth grant, and the amount, have not yet been released.
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Coronavirus – VAT Deferred Due To Coronavirus

As the deadline looms for VAT deferred between 20 March and 30 June 2020 to be paid, we detail below the options that you currently have to settle the liability.

Essentially, you can pay now or get ready to opt in to the VAT deferral new payment scheme

 

  1. What Are My Options?

If you deferred VAT between 20 March and 30 June 2020 and still have payments to make, you can:

  • pay the deferred VAT in full on or before 31 March 2021
  • opt in to the VAT deferral new payment scheme when it launches in 2021
  • contact HMRC if you need more help to pay

 

  1. What If I Want To Opt In To The New Payment Scheme
  • Firstly you cannot opt in yet.
  • The online opt in process will be available shortly.
  • You must opt in yourself, we cannot do this for you
  • What Do I Gain From Opting In?
  • Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free.
  • All instalments must be paid by the end of March 2022
  • You select the number of instalments from 2 to 11 equal monthly payments
  • Am I Eligible For The Scheme?
  • To use this scheme you must:
    • Still have deferred VAT to pay
    • be up to date with your VAT returns
    • opt in before the end of March 2021
    • pay the first instalment when you opt in
  • What If I Have Other Time To Pay Arrangements?
  • You can still have a time to pay arrangement for other HMRC debts and outstanding tax.
  • Can I Prepare Now To Opt In To The New Payment Scheme
  • You will need to use your own Government Gateway account; so if you have not set up one it is time to do so on-line https://www.gov.uk/log-in-register-hmrc-online-services
  • submit any outstanding VAT returns from the last 4 years. You will not be able to join the scheme if you have not done so
  • make sure you know how much you owe, including the amount you originally deferred and how much you may have already paid
  • consider the number of equal instalments you’ll need, from 2 to 11 months

 

  1. What If I Am Not Able To Pay My Deferred VAT
  • If you are unable to pay the VAT due and need additional time to pay, you should contact HMRC before the payment is due.
  • For help, either
    • Contact Lisa Garfinkle (lisag@barrons-bds.com) at Barrons who will be able to assist you and contact HMRC on your behalf if you prefer, or
    • Contact HMRC direct by
      • Using the GOV‌‌.UK website and search for ‘If you cannot pay your tax bill on time’, or
      • Call 0300 200 3835.
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After another week of turmoil and changes in Government policy…

Quite aside from how your Family Christmas plans have been affected by COVID-19 , the Chancellor has been busy trying to put stepping stones in place to support business contend with tough conditions for what seems likely to continue for some months to come

 

Coronavirus Job Retention Extended Again

In a surprise move, the Chancellor has announced that the Coronavirus Job Retention Scheme is to be further extended until 30 April 2021.

News of the extension to the scheme has come earlier than expected, as previously the Chancellor had committed to reviewing the level of support available in January 2021. In his statement made on 17th December, the Chancellor confirmed that the review had come earlier to “provide certainty to businesses so that they can plan for the remainder of the winter and New Year”.

  1. Has Anything Else changed?
  • Government have confirmed that the eligibility criteria for the scheme, the grant levels available and employer contributions all remain the same.
  • The scheme means that the government will continue to pay 80% of the salary of employees for hours not worked until 30 April 2021.
  • Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.

 

Government Guaranteed COVID-19 Schemes

In his statement, the Chancellor also confirmed that deadlines for applying for government-guaranteed COVID-19 loan schemes (CBILS, CLBILS and BBLS) had now been extended until 31 March 2021.

The extension is to ensure that businesses can continue to access monetary support in order to grow and recover.

You are strongly advised to review your cashflow projections as soon as practicable – with commitments made to HMRC for Time to Pay arrangements and the 12 month capital repayment holidays on BBLS and CBIL rapidly approaching for some, you should re-evaluate the cash needs of your business urgently.

If you need more support, please contact us – and remember you are able to top up facilities and replace a BBL facility with a CBIL facility (although you must settle the BBL facility out of a successful CBIL application).

 

Budget 2021 Date Announced

Also within his statement, the Chancellor confirmed that Budget 2021 will take place on 3 March 2021 and will provide further information on COVID-19 support packages.

 

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Important Extensions to the Corporate Insolvency and Governance Act …

As the year draws to a close, the Government has recently announced that it will extend some temporary provisions in the Corporate Insolvency and Governance Act, as well as reinstate one that had already lapsed.

Extension of Temporary Suspension of Statutory Demands and Winding-Up Petitions

The Government announced on 9 December that it will extend the temporary suspension of statutory demands and winding-up petitions, with the suspension running until 31 March 2021. This was due to end on 31 December 2020. 

 

Extension of Temporary Suspension of Wrongful Trading

The Government also announced on 9 on 25 November, its intention to reinstate the temporary suspension of wrongful trading until 30 April 2021.

The wrongful trading suspension ended on 30 September 2020, and the new temporary suspension is effective from 26 November in England, Wales & Scotland and from 14 December 2020 in Northern Ireland.

Please note that with the Regulations having a retrospective effect, there appears to be a gap of approximately two months where wrongful trading liability for directors was not suspended. As a result, it would appear that decisions and actions taken by directors in England, Wales & Scotland during the interim period between 30 September and 26 November would be subject to the ordinary wrongful trading provisions.

Strange times indeed….

 

Virtual AGM’s

Companies and other qualifying bodies that are obligated to hold AGMs will continue to be able to hold these meetings virtually until 31 March 2021. This dispensation was due to expire on 30 December 2020.

 

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