HMRC to go easy on struggling UK companies
The Business Secretary Kwasi Kwarteng has written to insolvency and restructuring practitioners promising HMRC would take “a cautious approach to enforcement of debt owed to government that will have accrued” during the pandemic. The move comes after business groups including the Institute of Directors and restructuring body R3 warned ministers last month that there could be an influx of insolvencies this summer if the reduced emergency Covid support measures were coupled with an aggressive approach from HMRC. Kwarteng said using insolvency to enforce payment will remain a “last resort”. He added the “path back to full trading will be difficult for many companies, particularly those with accrued debt and low cash reserves”.