Government Extends various measures to assist struggling business Posted: Dec 10, 2020

Over the last few days, a number of extensions have been announced which it is hoped to assist business affected by COVID 19. These are as follows;

·        On 25 November the Government reinstated the temporary removal of the threat of personal liability for wrongful trading from directors until 30 April 2021.

·        On 9 December the Government reinstate the temporary suspension of the use of statutory demands and winding-up and petitions until 31 March 2021

·        Also announced confirmation that companies and other qualifying bodies with obligations to hold AGMs will continue to have the flexibility to hold these meetings virtually until 31 March 2021. This means that shareholders can continue to examine company papers and vote on important issues remotely.

·        Finally, the Business eviction ban has been extended until the end of March 2021 and the government has announced a review of commercial landlord and tenant legislation to be launched.

Clearly, these measures are welcome following what has been a very difficult year for many businesses. However, it does store up problems for business already struggling and could lead that a significant increase in business failures from March onwards as these measures come to an end at the same time that any deferred VAT becomes due and the first payment on various CBILS and Bounce Back Loans become due.

If your business is going through a really rough time and you think you could be facing insolvency, then talk to us. The first consultation is free and whether it results in comforting reassurance, a rescue plan or an insolvency process, the sooner we start, the better your result will be.