Insolvency technical update – December 2022
Insolvency technical update – your round-up of recent developments in insolvency
HMRC Insolvency Guidance - new mailbox for VAT deregistration confirmation
HMRC has issued guidance setting out details of a dedicated mailbox for Insolvency Practitioners to request VAT deregistration confirmation, which is being trialled between 21 December 2022 and 23 March 2023.
The mailbox is only to be used when a response has not been obtained through the normal channels and the HMRC deregistration contact form must be fully completed with all of the relevant information for each case.
Dear IP154 has been issued by the Insolvency Service. The issue concerns Companies House reforms to be brought about by the Economic Crime and Corporate Transparency Bill.
Dear IP155 has been issued by the Insolvency Service. The edition provides details of a consultation paper released by HMRC on potential changes to the processing of option to tax forms by the Option to Tax (OTT) National Unit. Unfortunately, the closing date for feedback was 28 November, a date which fell earlier than the release of Dear IP155.
Option to Tax (OTT) processes
HMRC has responded to its consultation on potential changes to the processing of OTT forms by the OTT National Unit.
ICAS IPs should note that HMRC will continue to process requests from them, although, as pointed out in ICAS’ earlier response to the consultation, some of the items included in the list of information required by HMRC are unlikely to be available to the IP.
The proposed changes will go ahead from 1 February 2023.
UK Financial Intelligence Unit (UKFIU) SAR helpline
The UKFIU has gone live with a new number for their dedicated helpline for Suspicious Activity Report (SAR) confidentiality breaches.
The helpline is available for reporting sectors to raise any concerns about inappropriate use of SARs or breaches of SAR confidentiality.
The new contact number is 0207 238 1860 and is a 24-hour line available from Monday to Sunday.
Financial Conduct Authority (FCA) update on debt packager proposals
In November 2021, the FCA consulted on new rules to ban debt packagers from receiving fees or other remuneration for referrals to debt solution providers. ICAS’ response to that consultation is available to read.
Following analysis of the feedback and gathering of additional evidence from the debt packager market, the FCA has announced its intention to set out its proposed next steps, seeking feedback in a further four-week consultation which will be published early in 2023.
Corporate Insolvency and Governance Act 2020 (CIGA) evaluation reports
The Government made a commitment to review the three permanent measures introduced by CIGA, no longer than three years after they came into force. Those measures are:
- Company Moratorium (Part A1 Insolvency Act 1986)
- Restructuring Plan (Part 26A Companies Act 2006)
- Suspension of Ipso Facto (Termination) clauses (section 233B Insolvency Act 1986)
As part of that review the University of Wolverhampton was commissioned to carry out research on how the permanent CIGA measures have been received in practice.
The final evaluation report has now been published. The interim report can be found here.
Insolvency Service – winter 2022 newsletter
The Insolvency Service (IS) has released the winter 2022 edition of its newsletter.
The edition includes articles on how the IS is supporting customers and helping directors spot signs of insolvency, as well as how the IS is tackling abuse of covid support.
Proposed changes to earnings arrestment tables
The AiB has advised that the Minister for Public Finance, Planning and Community Wealth has written to the Economy and Fair Work Committee to outline his plans to bring forward proposals to uprate the earnings arrestment tables from 6 April 2023.
These tables were last uprated in April 2022 and are normally uprated every three years.
However, given the current rate of inflation and cost crisis, the Scottish Government is keen to conduct a further uprating of the tables now to provide some additional financial resilience to those subject to an earnings arrestment.
AiB Supervision Standard
The Accountant in Bankruptcy (AiB) has published the latest edition of its ‘Supervision Standard’ newsletter. The edition includes:
- Updates on guidance and processes
- Helpful hints and tips
AiB PTD Bulletin
The AiB has published its latest PTD Bulletin. The edition includes:
- Quarterly statistics
- Policy update
- PTD Protocol statistics
- Team update
- Reminder to all users
Kingston Park House Limited for an order under section 221 of the Insolvency Act 1986 to wind up Granton Commercial Industrial Properties Limited: The Court of Session has considered an appeal against the winding-up of a company incorporated and registered in Jersey. The Opinion considers the interpretation of s221 Insolvency Act 1986 relating to the winding-up of unregistered companies. The Court has also published its opinion in relation to the original winding-up petition.