Tax deferral gives increased flexibility, but less scrutiny
Accountants broadly favour offset trading loss provisions
Accountants say their clients have more flexibility in being able to offset
trading losses against their tax bills, but would like more HM Revenue Customs
to exercise more scrutiny.
The Telegraph reported
that £2 billion in business and personal taxes has been deferred since the HMRC
launched its business payment support service in November.
The period over which losses incurred this year has been extended in the
Budget to be offset against taxes on profits made during 2007 and 2008.
Smith & Williamson national tax director Richard Mannion praised the HMRC
for offering his clients added flexibility, but thinks the Revenue should ask
for more evidence that the business is struggling to meet its tax liabilities.