Businesses are facing unprecedented levels of operational disruption with new challenges emerging daily. One of the key challenges is cash management and liquidity, but an important question is how we factor taxes into this. When considering the various measures introduced, some key tax considerations have emerged.
- Basic principles of the coronavirus job retention scheme.
- VAT payments due between 20 March and 30 June 2020 can be deferred.
- There has been no general automatic deferral of all business taxes (such as payroll or corporation taxes).
- Managing debt and ongoing liquidity.
- If renegotiation is not possible can the business debts be refinanced?
- Liquidity and cash management strategies could mitigate tax leakage.
Originally published in Taxation Magazine, Issue 4745, 28 May 2020