HMRC is consulting on introducing legislation in Finance Bill 2020 to restore the department’s position as a preferential creditor in company insolvencies. The change will have effect for insolvencies commencing from 6 April 2020 and will cover specific tax debts, including VAT, PAYE (including student loan repayments), employee NICs and construction industry scheme deductions. The government’s view is that these are taxes paid by employees and customers and held by the business on behalf of HMRC, and that they should be protected in an insolvency. The concern is that the impact on business rescue and enterprise could be seriously undermined. Comments are invited by 27 May 2019.
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HMRC is consulting on introducing legislation in Finance Bill 2020 to restore the department’s position as a preferential creditor in company insolvencies. The change will have effect for insolvencies commencing from 6 April 2020 and will cover specific tax debts, including VAT, PAYE (including student loan repayments), employee NICs and construction industry scheme deductions. The government’s view is that these are taxes paid by employees and customers and held by the business on behalf of HMRC, and that they should be protected in an insolvency. The concern is that the impact on business rescue and enterprise could be seriously undermined. Comments are invited by 27 May 2019.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
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