Business and Other Briefings
HMRC: From 22 April 2009, any viable business anticipating making a trading loss in the current tax year will be able to have the anticipated loss taken into account as part of any rescheduling of its Corporation Tax or Income Tax payments.
This new measure means businesses will no longer have to wait for the end of their accounting period - which may be months ahead - to have the loss taken into account in calculating what they have to pay. This new business support initiative will be administered by the existing HM Revenue & Customs (HMRC) Business Payment Support Service (BPSS).
TIS: Large & medium-sized companies facing difficulties could receive additional help under proposed changes to insolvency laws announced in the 2009 Budget. The Insolvency Service will consult (in June 2009) on 2 important proposals:
* Giving large & medium-sized companies breathing space while they seek legally binding Company Voluntary Agreements (CVAs) with their creditors, without first having to place their companies into administration
* Giving absolute priority to new money lent to companies in CVA or administration. This would make it more attractive to lend to companies in this situation, allowing them to access the funding they need to get back on their feet and stay in business.
In addition, The Insolvency Service announced that this summer (not in June as stated in the Budget) will see the publication of the first of a series of regular reports on the monitoring of the operation of pre-pack sales.
The Statement of Insolvency Practice 16 issued earlier this year requires administrators to provide creditors with detailed reports explaining their decisions for a pre-pack administration as soon as they are appointed. Closer scrutiny of the reports by The Insolvency Service is designed to ensure that creditors are not being treated unfairly through the abuse of pre-pack sales.
Reverse charge accounting for businesses trading in mobile telephones and computer chips: renewal of EU derogation.