The taxman is being pushed up the pecking order when a company goes bust, to the irritation of other creditors. It is a short-sighted cash grab, says R3, the trade body for restructuring specialists and liquidators that decide who gets what when a company fails. The government hasnt thought through the total impact on lending to small businesses, it says.
You can see why banks might protest. From next April, HM Revenue & Customs claims will rank higher when a company is wound up.
As it stands now, creditors mostly banks that have lent money against specific assets such as warehouses or machinery still get first dibs on payouts. Next come the bills of the insolvency practitioners themselves. Whatever is left in the pot is divvie…
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