Its a while ago now, but Autumn Budget 2018 contained the still currently premature move to grant HMRC preferential creditor status in the event of insolvency, with potentially grim consequences for PSC contractors, writes Jonathan Munnery, partner at Begbies Traynor.
In practical terms, the move will push commercial finance providers to the backburner and, also from April 2020, demote company pension schemes in the hierarchy of creditors.
In revenue terms, the move is expected to rake in 60m for the Treasury in 2020/21 and 175m in 2023/24. Almost needless to say, the projections for contractors are nowhere near as positive. You can make your feelings known, as a consultation on reinstating HMRCs crown preference is set to close on May…
Read the full article at: https://www.contractoruk.com/news/0014095contractors_are_you_ready_pay_hmrc_debts_sooner_if_your_limited_company_insolvent.html