HMRC’s preferential status may create an unexpected windfall for accountants…

With effect from 1 December 20, HMRC have become a secondary preferential creditor in insolvency proceedings. This means that HMRC rank behind the employees but ahead of any floating charge creditors such as banks and unsecured creditors.

It is really important that the company’s accountants continue to assist the comp0any and the subsequently appointed insolvency practitioner during the insolvency process to update and submit any outstanding PAYE, NI, VAT and CIS returns.

The Company’s accountants will usually be much better placed than the IP to prepare and submit these returns and will be able to do it much more cost effectively thereby enhancing and expediting the return to HMRC.

Businesses effected by the covid pandemic are welcome to call us for a free consultation at which advice will be given. To make an appointment please telephone Stella Flemmings on 01377 257788 and she will make you an appointment with one of our insolvency professionals either at one of our offices in Driffield, Scunthorpe or York. Meetings can be held virtually or at our offices whilst observing the socially distancing guidelines.

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