07 May 2024 14:09:43
Question that maybe Ani maybe able to answer
If a company are declared insolvent and are in debt to many sub contractors, can the subbys offset the loses against their revenue annual tax bill?
07 May 2024 16:32:01
Call the Toffees better accountancy hotline ?☎️. Then try Florist ? for a second opinion.
07 May 2024 18:18:23
???
Brillo Blanco.
08 May 2024 06:21:15
Yes Chris…if a company is unlikely to receive money, they can either continue to hold that money in the accounts (in the hope they may ultimately get paid) or right-off the debt. The latter reduces profit / increases the losses and therefore, any corporation tax due at the end of the year of the net outcome is commensurately reduced.
08 May 2024 16:43:21
I should add, if VAT has been involved and the company has paid VAT on the money / debt, then this can also be recovered back.
08 May 2024 21:07:57
Thank for your insight Ani?
Had a feeling you would know company law well
Cheers pal.