All companies are required to submit accounts and reports each year and under normal circumstances, late ones are issued with an automatic penalty. However, the Government has announced a joint initiative with Companies House so businesses can prioritise managing the impact of Coronavirus.
Applications can be made through a fast-tracked online system, taking only 15 minutes to complete. Those citing issues around COVID-19 will be automatically and immediately granted an extension.
If companies do not apply for an extension and their accounts are filed late, the automatic penalty will be imposed. Any appeal is treated on a case-by-case basis, and Companies House already has policies in place to deal with appeals based upon unforeseen poor health.
Companies that have already extended their filing deadline or shortened their accounting reference period may be ineligible for an extension. If an extension is agreed, accounts must be filed before the new due date or the company will receive a late filing penalty.
Propertymark members
Propertymark advises all members that can file on time, to do so in order to avoid unnecessary delays. Existing scheduled dates for submitting an accountant’s report as part of membership requirements remain in place. This requirement is a key component of compliance with membership for principals, partners, and directors.
Scheduled dates remain in place because Propertymark members collectively hold £1.5 billion in client accounts. The statutory requirements for Client Money Protection require regular inspection of client accounts to ensure that we are all maintaining expected standards of conduct in relation to client accounts. The Lettings Partnership Healthcheck offers a simple, cost-effective alternative to an Accountants’ Report – check if your business is eligible here.
Annual General Meetings
The government 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. Updated guidance on this matter will be published in due course.