This article, and in line with other extensions to statutory provisions introduced due to the COVID pandemic, (see Natasha Wright’s article of 18 June “Forfeiture Moratorium extended for the fifth time”) the Government has published regulations extending the deadlines relating to some of the current temporary measures. The current :
The regulations have not extended the temporary suspension of wrongful trading liability (where connected to the COVID pandemic) or the exemption for small suppliers from the restrictions on terminating supply contracts as a result of customer insolvency. These exemptions expired on 30 June 2021.
The regulations apply to both profit and not for profit corporate organisations such as corporate charities.
Charities facing financial difficulties are encouraged to seek professional advice at the earliest opportunity if they have any concerns about their charity’s ability to continue to trade as a going concern. By doing so they maximise the options for survival going forwards.
Further guidance on managing financial difficulties is provided by the Charity Commission:
The Charity Commission has also updated is guidance to help with running charities during the coronavirus (COVID-19) outbreak. This includes confirmation that the Commission will be contacting all charities with a filing extension that was in place by 30 June 2021 will now be extended to 30 September 2021.
Further, from 1 July 2021 to 30 September 2021, if a charity has an imminent filing date and is unable to meet its filing obligation for a COVID-19 related reason, it can apply for a new filing extension. The Commission will allow a fixed 3-month extension from the date of the application :
If you or a charity for which you act are concerned about any of the issues raised in this article or have any queries about the management of your charity, please do get in touch with me.
Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.