As the Government’s Covid support nears its end, what should businesses be doing? Here’s a checklist…

As Covid-19 restrictions continue to ease, Government support measures are waning.  

So, what steps should directors be taking or considering now? 

  1. Moratorium on winding up petitions and statutory demands 

Restrictions on filing a statutory demand and winding up petition for Covid related debts have now been extended (again) by 3 months, to 30 September 2021

This means that creditors are prevented from presenting a statutory demand or winding up petition unless the creditor has reasonable grounds for believing that (1) Covid has not had a financial effect on the company or (2) that the circumstances forming the basis of the winding up petition would have occurred even if Covid had not had a financial effect on the company. 

If you are owed or owe monies, be aware that the 30 September moratorium is unlikely to be extended. So be prepared to press for repayment or repay from such date.

Wrongful trading

The announcement about the extension of the Moratorium on winding up petitions and statutory demands did not mention a further extension on the suspension of personal liability for wrongful trading. It’s therefore implied that directors could be liable for wrongful trading post 1 July. 

In the current environment, many directors are concerned about their personal exposure, particularly if the businesses they help manage are experiencing financial distress. Such directors should consider purchasing a Directors’ & Officers’ liability insurance policy (“D&O policy”) which can provide peace of mind for those concerned about their personal exposure if their business enters into an insolvency procedure. 

Note that a D&O policy is no substitute for taking appropriate precautions to avoid liability in the first place. 

Protection from eviction enforcement 

The moratorium on "aggressive" action by landlords against their commercial tenants that breach the terms of their leases has now been extended until 25 March 2022. This means that, whilst the moratorium is in place, a landlord will not be able to evict a tenant for non-payment of rent.

The legislation does not apply to short leases and after 25 March 2022, landlords will still be able to claim for forfeiture for both payments that became due during the moratorium period, and for any becoming due, but remaining unpaid, after it ends.

Coronavirus Job Retention (Furlough) Scheme

The Furlough Scheme is being fully withdrawn on 30 September 2021. For employees who are placed on furlough, there is no guarantee that they will be retained once the scheme ends.

If you have employees currently on furlough, you should now be considering their return to work – and the prospect of dealing with redundancies once the scheme ends. 

Coronavirus Remote Right to Work concession 

As a result of the Government’s announcement on 14 June 2021 to extend the date for the easing of lockdown restrictions and social distancing measures, the temporary Covid adjusted right to work checks in respect of overseas workers will now end on 31 August 2021

From 1 September 2021, employers will revert to face-to-face and physical document checks as set out in legislation and guidance.

Your supply chain

On 30 June 2021, the Trade Credit Reinsurance (“TCR”) scheme closed. The scheme assisted suppliers to secure insurance protection in respect of supplies to their customers.

But whilst the TCR has ended, the question remains about exposure to retailers, some of whom may well ‘over trade’ in the months ahead and, as a result, default on their creditors. 

As such, you should give thought to:

  • the terms on which you trade; or
  • whether your standard terms and conditions of sale will protect you; or
  • if your standard terms and conditions of sale are being properly incorporated into contracts made with customers.

About the authors: Priya Mattu is a Corporate law associate, Paul Taylor is a Corporate law partner and Stephen Sidkin is a Commercial law partner at Fox Williams LLP. Contact

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