I have never dealt with a client with losses before so this is a first.
One of my clients always make impressive profit year on year. However, due to adverse changes in recent trading environment and regulations, my client is going to report huge losses in the current financial year. Obviously there is no cashflow in the business to pay for the corporation tax of the previous financial year which is due very soon. To carry back the losses to the previous year is not going to happen until the current year is completed and the CT600 filed. Therefore, is there any procedures that my client can delay payment of corporation tax of the previous year due to the current year has a potentially large corporation tax loss? If not, would HMRC eventually apply for insolvency on non payment of corporation tax?
Your views and suggestions would be highly appreciated before we get in touch with HMRC.