Limited companyRental IncomeCovid 19: Support for Companies

Loans through the Future Fund

The Future Fund (the ‘Fund’) is a source of finance for companies which rely on equity investment, and so which may be unable to access other support. It launched on 20 May 2020.

Under the Fund, which is delivered by the British Business Bank (the BBB), the government will provide convertible loans ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.

The company must meet the following conditions in order to be eligible for a loan from the Fund:

  • it is UK-incorporated;
  • it has raised at least £250,000 in equity investment from third-party investors in the last 5 years;
  • none of its shares are traded on a regulated market, multilateral trading facility or other listing venue;
  • it was incorporated on or before 31 December 2019; and
  • at least one of the following is true:
    • half or more employees are UK-based; and
    • half or more revenues are from UK sales.

Restrictions apply with regard to how the company may use the monies it receives; for example, the company may not use the funds to pay dividends.


Directors: Job Retention Scheme

A director of a limited company is not eligible for a grant under the Self-employed Income Support Scheme.

HMRC’s guidance states that directors, including directors of personal service companies (PSCs), are eligible to be furloughed under the Job Retention Scheme.

This also applies to salaried individuals who are directors of their own personal service company (PSC).


Shareholders: deferral of 31 July 2020 POA

The deferral of the 31 July 2020 POA described above applies to all taxpayers. This includes shareholders in the company who may have an income tax liability in respect of dividend income.


Impact on company residence

HMRC has updated its guidance on corporate residence and permanent establishments to take into account the disruption caused by CODID-19. HMRC state that they are ‘sympathetic’ and that the existing legislation provides ‘flexibility’ to deal with the situation.


Corporate insolvency and governance

The government has introduced the Corporate Insolvency and Governance Bill in Parliament. The Bill puts into place a series of measures to amend insolvency and company law to support businesses impacted by COVID-19. The government has stated that the Bill has three main purposes:

  • to introduce new corporate restructuring tools to the insolvency and restructuring regime to give companies the breathing space and tools required to maximise their chance of survival;
  • to temporarily suspend parts of insolvency law to support directors to continue trading through the emergency without the threat of personal liability, and to protect companies from aggressive creditor action; and
  • to amend company law and other legislation to provide companies and other bodies with temporary easements on company filing and annual general meetings (which will extend to charitable incorporated organisations and mutual societies) thus allowing them to focus their resources on continuing operations in this uncertain time.

Government Guidance

Extension of filing deadlines

A company which is unable to file its accounts with Companies House on time should consider applying for 3-month extension. This may prevent the imposition of a fixed penalty.


Unlike some other measures, this is not given automatically – the company must apply to Companies House for an extension.

It is possible to apply for an extension online.

Engaging with Companies House

Companies House has published guidance on how to submit certain documents (for example, form RPO2A to apply for rectification by the registrar of companies) and with regard to the process for form SH03 (Return of purchase of own shares).

See also: Businesses Corona-virus support.

See here for the support available to self-employed.

We can help with all of your business and personal tax and financial planning needs. For a strategic review of your finances, please contact us.

Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our consultants if you need more information. This guide was written specifically for Smart Accounting clients. Some of the information contained in this guide might not be applicable if you do not have a business managed by Smart Accounting. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.

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