Even among those who follow good tax-planning practice and maintain forecasts running several years forward, it is unlikely that many foresaw the dramatic end to the 2019/20 tax year.
With the arrival of COVID-19 and the subsequent lockdown, the economy shrank a record 20.4% in April 2020, and 19.1% in the three months to May 2020.
The impact on businesses across the board has been significant and although the economy is reopening slowly, it is clear a return to the ‘old normal’ is some time away or may never return at all.
Looking forward through the next 12 months, tax management and planning could play an important role in helping your business survive these uncertain times.
Now is a good time to review whether the tax planning strategies of your business both short and long-term are still relevant for 2020/21, regardless of whether the coronavirus crisis has had a positive or negative impact on your trading profits.
Posted by Lambert Chapman
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.