Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Company Voluntary Agreements plunge as taxman tightens debt recovery rules

by August 22, 2022
August 22, 2022
Company Voluntary Agreements plunge as taxman tightens debt recovery rules

The number of struggling firms striking Company Voluntary Arrangements (CVAs) with creditors has plunged 47 per cent in the past year after tax authorities tightened the way they can reclaim debts, new data has revealed.

CVAs, in which struggling firms strike agreements with their creditors to pay off debts, have fallen to just 110 in the last 12 months, down from 206 in the previous year, according to data analysed by tax and advisory firm Mazars.

The agreements have offered a liferaft to sinking firms and helped preserve jobs. But Mazars said that a 2020 change to the law to the way that HM Revenue & Customs can recover tax debts has made CVA a more difficult option for firms and could lead to a surge in businesses filing for administration.

“It is understandable for HMRC to be a preferred creditor with a view to recover money owed to the taxpayer,” said Rebecca Dacre, Partner at Mazars. But it must be recognised that the unintended consequence of this is fewer companies entering a CVA.”

The change will mean directors will have fewer insolvency options, leading to worse returns for other creditors and “ultimately more administrations”, she added.

 

Read more:
Company Voluntary Agreements plunge as taxman tightens debt recovery rules

0
FacebookTwitterGoogle +Pinterest
previous post
Number of firms fined for deliberate corporation tax misinformation hits four-year high
next post
Removal of presenteeism and focus on wellbeing should steer remote management styles

You may also like

Jaguar cuts petrol cars as it changes gear...

July 16, 2024

Morrisons scraps four-day working week for head office...

January 24, 2024

Rail and postal strikes ‘decimated’ festive trade with...

February 15, 2023

Israeli actress Roni Nadler to invest £7M in...

May 18, 2023

Thousands of UK Boeing jobs at risk as...

October 13, 2024

UK Government has lost £21bn in pandemic fraud,...

March 31, 2023

CBI launches Defence & Economic Growth Taskforce to...

April 23, 2025

100 jobs under threat at Grimsby-based smart home...

May 19, 2023

New Brexit trading rules could take more than...

March 7, 2023

UK’s biggest sandwich maker Greencore agrees deal to...

April 2, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Senate Republicans ram Trump’s ‘big, beautiful bill’ through key test vote

      June 29, 2025
    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025
    • Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s Baby and Hawkstone lead the charge

      June 29, 2025
    • Schumer to force Senate reading of Trump’s entire ‘big, beautiful bill’

      June 28, 2025
    • Rubio condemns Iran’s ‘unacceptable’ threats against IAEA director

      June 28, 2025
    • Key blue state Republican says Senate’s local tax write-off offer is a ‘good deal’

      June 28, 2025

    Categories

    • Business (8,330)
    • Investing (2,081)
    • Politics (15,853)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved