THREE-MONTH EXTENSION ON FILING ACCOUNTS
A joint initiative between the Government and Companies House means businesses will be able to apply for an additional three months to file accounts. The move is designed to help companies avoid penalties as they deal with the impact of Covid-19. As part of the agreed measures, those citing issues around Covid-19 will be automatically and immediately granted an extension. Applications can be made through a fast-tracked online system which will, it is claimed, take just 15 minutes to complete.
The same three-month extension will apply to submission of the corporation tax return. Under FA 1998, Sch. 18, para 19(b), a company is not liable to a flat rate penalty for late submission of a tax return if the return is delivered no later than the last day for the delivery of those accounts to the registrar of companies. However, please note this only protects the company from the fixed penalty. The tax-geared penalty will arise 18 months after the return period, if any tax remains unpaid at the 18-month date.
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