Loss Carry Back Lifeline for Businesses in Troubled Waters
In the March Budget an emergency extension to the ‘loss carry back’ rules from one year to three years was put in place by the Government, allowing businesses in ‘troubled waters’ due to the pandemic to claim tax refunds, helping to mitigate losses.
Incorporated businesses (including those with de facto self-employed company directors and no employees), sole traders and partnerships should benefit from the new rules, which offer a lifeline to businesses struggling to survive the current crisis. HMRC estimates it will pay out over £1 billion in ‘loss carry back’ tax refunds over the next 2 years, but will not know the actual figure until tax returns have been completed.
Folkes Worton – Accounting for the Future