What the Chancellor’s Mini Budget Means for Small Businesses

The Chancellor has unveiled a £30bn plan to protect jobs and boost the economy in the wake of the coronavirus pandemic, but what will this ‘mini budget’ mean for contractors’ small businesses in the UK?

A lot of company directors, particularly new company directors, are not 100 percent clear on their responsibilities to HMRC.
Confusion around things like employer taxation, expenses and reporting can all put people off starting their own business. And penalties can be steep when HMRC is involved.
At Cloud Accountant, our aim is to make life as easy as possible for stressed-out company directors. Because we know that there are more important things for them to be focussed on. That’s why we work with some of the best accountancy software providers and provide advice and support wherever necessary.

Coronavirus: Companies get three extra months to file taxes

Companies affected by the coronavirus can apply for an additional three month extension to file their taxes, without receiving an automatic penalty.

Part of the government’s package of support for UK businesses, the extension means that companies of all sizes will be able to prioritise their COVID-19 response over handling taxes.

4.3 million businesses must submit accounts and reports to Companies House each year and, under normal circumstances, late filers are issued with an automatic penalty.

This extension is not automatic, so you will need to apply to Companies House if you want to take advantage of it. However, any extension applications that cite issues around the impact of COVID-19 will be granted immediately, according to the Government.

If you have already extended your filing deadline or have shortened your accounting reference period then you may be ineligible for the automatic extension. Similarly, if your filing deadline has already passed then you will not be able to apply for the extension.

From 6 April 2016 most companies have been required to hold a register detailing all the 'people with significant control’ (PSC) in the business. So far, guidance is not clear about the consequences of non-compliance, but the possibility of criminal charges or the prospect of HMRC investigations should be enough to get any company to fill in the form.