HMRC is trying to improve efficiency by making changes to the administrative burden on IPs for when Companies House notify HMRC about an insolvent liquidation.
Following notice of a liquidation HMRC will update its system to make these records inactive and confirm this in writing to the IP dealing with the liquidation.
If during the period of liquidation, there’s been no activity giving rise to a charge under Corporation Tax, you will no longer have to submit nil Company Tax Returns or liquidator reports.
The new process will only apply to new insolvency cases.
The recent increase in late payment interest rates by HMRC is projected to generate an additional £500m for the tax office in the 2025/2026 financial year.
Starting from April 6, 2025, the interest rate will rise to the Bank of England base rate plus four percentage points, potentially reaching 8.75%.
Corporate insolvencies increased by 12.8% in November 2024 to a total of 1,966 compared to October’s total of 1,743 and decreased by 12.3% compared to November 2023’s figure of 2,243.
K2 Partners works with IPs and businesses to assess whether their businesses can be restructured and saved.
If you would like to have a free informal chat to see if we can help please email or call us.