0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Emergency Corporate Insolvency Measures Extended into Next Year

Written by: Keith Tully

Worried man thinking about his companyThe government has announced extensions to corporate insolvency and governance measures brought in to offer some extra breathing space to companies and their directors during the coronavirus pandemic.

Policies designed to protect businesses from going bust because of the crisis were first introduced earlier this year through the Corporate Insolvency and Governance Act and were set to expire on September 30th.

But those protections will now stay in place until the end of 2020, with statutory demands and winding up petitions to be restricted with the stated aim being to “protect companies from aggressive creditor enforcement action as a result of coronavirus related debts”.

Meanwhile, temporary moratorium rules are officially being extended until March 30 2021, with requirements for entry relaxed to give companies a better chance of weathering the financial storm that the Covid-19 crisis has come to represent.

“It is vital that we continue to deliver certainty to businesses through this challenging time, which is why we are now extending these important and necessary measures to protect companies from insolvency,” said the business minister Lord Callanan in a statement.

The insolvency and restructuring industry’s main trade body R3 has welcomed the temporary extensions of Covid insolvency measures and the support packages promised to businesses through the chancellor Rishi Sunak’s ‘Winter Economy Plan’.

However, the organisation’s president Colin Haig has also raised questions about what the government might do in future to support the huge numbers of companies that took on high levels of debt this year as they sought to survive financially against a backdrop of the Covid-19 crisis.

Specifically, Mr Haig has highlighted the importance of HMRC, with the suggestion being that much will rest on what the Revenue’s attitude will eventually be to pursuing Covid-related debts in the coming years. 

“We would welcome HMRC adopting a constructive approach to sensible, well-structured restructuring proposals,” R3’s president said in a statement.

“They [HMRC] are an important stakeholder in insolvency and restructuring procedures and their support at this time is and will be very significant.”

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
78
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners