Loss-making firms handed taxation boost

Date: 24th April 2009

Loss-making small businesses will now have their anticipated deficit taken into account when rescheduling taxation payments, it has been revealed.

Following a raft of new support measures introduced at Wednesday's (April 22nd) budget, HM Revenue and Customs (HMRC) announced that forecast losses will be considered when postponing income taxation and corporation tax instalments.

A spokesperson for the department said: "This new measure means businesses will no longer have to wait for the end of their accounting period, which may be months ahead, to have the loss taken into account in calculating what they have to pay."

For detailed information on benefits of the scheme, which will be administered under HMRC's existing Business Payment Support Service, managers and owners should consult their accountant.

As part of this week's budget, the chancellor also announced that the government would be extending capital allowances to small firms to 40 per cent for one year.