Government announces changes to the insolvency system for COVID-19 related issues
Announced Saturday 28 March
As the COVID-19 situation continues many of you will also be looking into the months head, and we appreciate that for many of you cash-flow is, or may become, an issue.
However, on Saturday 28 March the Government announced changes to the insolvency system, which may help businesses to manage cash-flow issues related to COVID-19.
Should your business reach the point where it becomes unable to pay the money it owes to another person or company on time, then it might ordinarily become insolvent. But the relaxing of some measures as announced by business secretary Alok Sharma, may allow businesses to continue to operate at this challenging time.
The new rules will be backdated to 1 March 2020 for an initial period of three months but the Government has said it may extend that period if needed.
You can read more about the Government’s announcement here.