Carry back extension reminder

Don't forget that up to £50,000 of trading losses suffered in current accounting periods can now be carried back against taxable profits of the previous three years. The rule has been extended from the earlier one-year limit. 

Businesses that wish to obtain tax repayments should prepare accounts early to accelerate claims to relief.

HMRC help

If your business is struggling to settle current tax liabilities, HMRC does allow a 'time to pay' arrangement to prevent collection proceedings and mitigate any penalties or surcharges that may arise. HMRC has also confirmed that anticipated relief from loss carry backs can be taken into account in agreeing a 'time to pay' arrangement. But you should get HMRC's approval in advance of any delay in payment of your tax liabilities.

If you need advice as to whether your business is affected by these new rules, contact your usual Littlejohn tax adviser or email tax@littlejohnllp.com

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Tax Matters November 2009

Disclaimer:
This guide is prepared as a general guide only. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the author or publisher. Always seek professional advice before acting.