FINANCIAL REPORTING DURING THIS CHAOS



If you have any questions, please get in touch with our COVID-19 Task Force here


RELEVANT AS OF 1:00PM 30TH MARCH
Are you struggling to file your accounts on time?  

Companies House have announced that businesses affected by the COVID-19 pandemic can now apply for an extension to file their accounts. The announcement is designed to help businesses affected by COVID-19 avoid penalties and is an extension of support from Companies House.   

Where the impact of Coronavirus means you cannot file on time, you are eligible for an automatic and immediate 3 month extension to file your accounts. See here for latest information from Companies House. 

You must however apply for an extension, before your filing deadline, citing COVID-19 as the grounds for extension in your application. 

Applications can be made online here through a fast-tracked application system, which takes just 15 minutes. 

If you have already extended your filing deadline or shortened your accounting reference period, you may not be eligible for an extension. 

The government have said this policy will be kept under review and amended as necessary in light of the progress of the COVID-19 pandemic. 

Please get in touch with  Alison Fovargue  if you want to chat this through 

Carrying forward annual leave  

Some businesses affected by COVID-19 are working non-stop, and as a result it’s anticipated that employees may not be able to take statutory minimum annual leave entitlement.   

To support these businesses, the government have announced that employees who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next 2 leave years. 

The changes will amend the Working Time Regulations, which apply to almost all workers, including agency workers, those who work irregular hours, and workers on zero-hours contracts. 

Where it'S not reasonably practicable for a worker to take some, or all, of the holiday to which they are entitled due to the coronavirus, they have a right to carry the 4 weeks into the next 2 leave years. This will not apply to the 1.6 weeks (bank holiday equivalent), but this can be carried forward one year by agreement between workers and employers. 

If this measure is relevant to you it may be worth speaking to your employment law advisor to understand how the change to working time regulations affect your business.  

What’s the impact on financial statements? 

Employers will need to consider accruing for unused annual leave entitlement for the purpose of preparing year end financial statements.  The tax treatment of the accrual will depend on who it’s for and when it’s paid. 

Gender Pay Reporting

Since 2017, any organisation that has 250 or more employees have been required to publish and report specific figures about their gender pay gap. 

Due to the Coronavirus outbreak, the Government have taken the decision to suspend enforcement of the gender pay gap deadlines for this reporting year (2019/20). 

Please get in touch with  Alison Fovargue  if you want to chat this through