Insolvency hierarchy changes
Winner of the “Best Cloud Accounting Firm 2016” award

From 6 April 2020, insolvency legislation will be amended to move HMRC up the creditor hierarchy for the distribution of assets in the event of insolvency by making HMRC a secondary preferential creditor in respect of certain tax debts held by a business (this includes individuals and partnerships) on behalf of their customers and employees. This includes VAT, PAYE income tax and CIS deductions.

The rules will remain unchanged for taxes owed by businesses themselves, such as corporation tax and employer National Insurance contributions.

In addition, directors and other persons connected to companies subject to an insolvency procedure will be made jointly and severally liable for amounts payable to HMRC by the company in certain circumstances. This will apply mainly in cases where the company has engaged in avoidance, evasion or 'phoenixism'.

Internet link: GOV.UK insolvency

Get in touch

Why not drop us a line or fill in our very quick enquiry form

Address

Oculus Accountancy, 83 Victoria Street, London SW1H 0HW

Phone

020 3950 1170

Image Captcha
Enter the numbers above

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

© 2024 Oculus Accountancy. All rights reserved. Banner images designed by Freepik

We use cookies on this website, you can find more information about cookies here.