New finance bill proposed for 2019-20.

From 6th April 2020, if a company becomes insolvent with unpaid tax liabilities which should be payable to HMRC such as VAT, PAYE Income Tax, Employee National Insurance contributions and these liabilities will take priority over other unsecured or floating charge creditors.

Other company tax liabilities such as corporations’ tax and employers NIC will not be affected by the measure.

HMRC will also make directors and other people involved in tax avoidance, evasion or phoenixism jointly and severally liable for company tax liabilities, where there is a risk that companies may deliberately enter insolvency.

To find out more, please visit: http://bit.ly/2RmSZvG