Improving cashflow is essential in current climate

Businesses suffering low revenues due to the coronavirus crisis may be able to offset their expected losses for this year against last year’s taxable profits according to accountants and business advisers Moore. 

The firm says that many small and medium-sized enterprises will have to make corporation tax payments based on the previous year’s taxable profits in the forthcoming months. However if the business is expecting to make a significant loss in the current year it could consider offsetting this as soon as possible to reduce tax liabilities and to help with cashflow. 

Moore explains that companies will need to pay their corporation tax liability within nine months and one day after the end of their annual accounting period. For example a business with a year end of 31 December 2019 will need to pay its tax bill by 1 October 2020. If it was able ...