Corporate Insolvency and Governance Act 2020

Corporate Insolvency and Governance Act 2020 received royal assent on 25 June 2020 and come into effect on 26 June 2020. The Act will give more time to Public limited companies (PLCs) and Societas Europaea (SEs) to comply with Companies House requirements.

Additionally, the Act also introduce a new moratorium to give breathing space to businesses struggling to survive during this COVID-19 outbreak.

Company accounts filing requirements

The Corporate Insolvency and Governance Act 2020 introduced changes to company accounts filing deadline for PLCs and SEs. Specifically for PLCs and SEs with a filing deadline between 26 March 2020 and 26 June 2020.

If your company account’s filing deadline falls between the two dates then you will get an automatic extension.

SituationOriginal filing deadlinePreviously extended?New filing deadline
1Between 26 March 2020 and 31 March 2020NOextend 12 months
2on or after 1 April 2020 and before 30 September 2020NOFiling deadline will move to 30 September 2020
3Filing deadline already extended prior to the Act coming into forceN/AFiling deadline will either be extended to 12 months from the year end or 30 September 2020 – whichever is earlier
4Filing deadline already extended to the maximum 12 monthsN/ANo further extension
Source: Guidance for public companies published on 26 June 2020

How these changes would help PLC and SE?

Usually, your company will receive an automatic late filing penalty when you delivered your company accounts late to Companies House. Companies House will review the late filing penalty issued if your company accounts filing deadline is between 26 March 2020 and 26 June 2020.

On the same note, extending the statutory filing deadline will make PLCs and SEs with accounting year-end dates between 26 March and 26 June 2020 no longer in default if they have not yet filed their company accounts.

Other help and support to businesses by Companies House

On 26 June 2020, Companies House also grants an automatic extension for the following filings:

  • Company accounts extension for private limited companies limited liability partnerships, Overseas Companies, PLCs and SEs.
  • Confirmation statement filing deadline extension to 42 days.
  • Events driven filings deadlines also extend to 42 days.
  • Mortgage charges registration has a further 10 days to submit the document with Companies House.

Read the full guidance here.

Report price gouging business

The Competition and Market Authority (CMA) encourages the public to report price gouging business during this Coronavirus (COVID-19) outbreak. You can do this online. The CMA has received many complaints about huge price increases for essential products needed during this pandemic.

such as hand sanitizer, paracetamol, flour, meat, toilet roll, rice and eggs.

The price gouging businesses are taking advantage of consumers during this pandemic. This is poor business behaviour and should stop. If you encounter any such poor business behaviour, please report them to the CMA using the link below.

Examples of Poor business behaviors to report

  • Unfair prices for products or services I’m buying for me and/or other people
  • Unfair prices for business-to-business sales
  • A business making misleading claims about products or services
  • Problems with the cancellation, refund or exchange of products or services
  • and any other unfair behaviour you encountered

The most commonly reported price hiked products are listed below. To report, you must provide a description of the product, the current raised price and the original price before the COVID-19 outbreak.

Food products

  • Long life milk
  • Pasta
  • Meat
  • Halal meat
  • Eggs
  • Flour
  • Rice
  • Fruit or vegetables
  • Baby formula
  • Other food product
  • Hygiene & personal care products

Hand sanitizer

  • Toilet roll
  • Other hygiene product

Medical products

  • Paracetamol
  • Ibuprofen
  • Antiseptic
  • Other medical product
  • Other product

Similarly, If the product or service you would like to report not listed above, you can provide a description of the product, the current raised price and the original price before the pandemic.

You must indicate in the online form where did the poor business behavior happen? whether online or in store etc.

Do take note of the business name and address where you encounter this poor business behaviour and also the date of the event. Even better if you could provide evidence such as a screenshot, a photograph or a receipt.

You must declare if you are happy to be contacted for more information. Then you click SUBMIT the complaint form.

Companies House filings

During this COVID-19 outbreak, Companies House encourages its customers to submit documents online.  You can submit the following documents online.

All you need is your company’s authentication code issued by Companies House. The authentication code is the electronic equivalent of your company’s director(s) signatures. Keep safe your authentication code.

Companies House announced temporary changes to filing requirements on 1 July 2020. You will get an automatic extension of your company account and confirmation statement filing deadline. You can check your document’s filing due date from the Companies House website.

Companies House has also created an interim paperless filing service to accept documents which must be delivered on a paper form with a live signature.

If you require help with your UK company’s filings, contact us. Our accountants can help you.

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