The new Business Support service continues to offer tax payers deferred terms for settlement of their tax liabilities. Nationally the feedback from businesses and individuals who have made applications has been promising – HMRC have been sympathetic and supportive in most cases.
However there is a circumstance where the Support Service staff have been unable to assist and that is when businesses are making losses in the current tax year.
Under recent concessions from HMRC it is now possible to carry back some tax losses for 3 years. Of course it is not possible to quantify the tax effects of these losses until accounts are finally submitted with the relevant claims.
The Budget announcement last week now includes powers that will allow the Business Payment Support Service to take these losses into account when negotiating deferred payment arrangements.
We recommend that you call us if you need to quantify the effects of possible loss relief in the current year, and carry backs to previous years.