This may be a relevant consideration to a company director now considering entering into a Company Voluntary Arrangement (CVA) procedure, particularly where HMRC is a big proportion of a CVA company’s debt.
Directors should consider the effect of the planned HMRC status change, and the difference it will make to HMRC and non-preferential creditors. Will it be harder to get a CVA agreed by non-HMRC creditors because of a lower anticipated dividend after March 2020?
If you would like to discuss how this might affect your plans and timing of a CVA, you can contact us (0121 201 1720) for further information. Any discussion is without obligation and is completely confidential.