Companies to receive 3-month extension to file accounts during COVID-19
Businesses will be given an additional three months to file accounts with Companies House to help companies avoid penalties as they deal with the impact of COVID-19.
From 25 March, businesses will be able to apply for a three-month extension for filing their accounts.
This joint initiative between the government and Companies House will mean businesses can 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, while companies will still have to apply for the three-month extension to be granted, those citing issues around COVID-19 will be automatically and immediately granted an extension. According to the government, applications can be made through a fast-tracked online system, which will take just 15 minutes to complete.
"We have outlined a business support package on an unprecedented scale, backing companies and their employees through these challenging times," said Business Secretary Alok Sharma.
"But it is important that our support is not limited to financial assistance. We are determined to help businesses in any way we can, so that they can focus all their efforts on dealing with the impact of coronavirus, and this new offer of a three-month extension for filing accounts is part of that."
Recognising that these are uncertain times for businesses, Companies House said it is doing all it can to help.
"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," said Companies House chief executive Louise Smyth.
The government confirmed it is also in close consultation with company representative bodies, legal practitioners and others, to look at solutions for the impact COVID-19 may have on companies’ ability to hold annual general meetings.