Business tax

Businesses that believe they will make a trading loss in the current tax year can ask HM Revenue and Customs (HMRC) to take the anticipated loss into account as part of any rescheduling of their corporation tax or income tax payments.

Once profitable businesses that are now suffering losses as a result of the recession were offered some relief in the Chancellor’s Budget.

The Chancellor has extended a scheme aimed at helping loss-making firms ease their cashflow worries by enabling them to reclaim taxes paid on profits during the last three years.

The Chancellor has delivered one of the most important Budgets in years against a backdrop of rising unemployment, soaring government borrowing and quite possibly the hardest hitting recession since the Second World War.

The British Chambers of Commerce (BCC) has argued that the Budget needs to focus on giving private sector businesses the freedom and flexibility needed to pull the economy out of recession.

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