Since the end of Members’ Voluntary Liquidation (MVL) clearance, there has been an increase in Notices of Intended Dividends (NOIDs) submitted by insolvency practitioners (IPs), under Rule 14.29(1)(b) Insolvency (England and Wales) Rules 2016 (IR16).
This has created operational challenges for HMRC.
Operational challenges for HMRC
High volumes
There has been a significant increase in NOIDs since the end of MVL clearance.
Early submission
There are some IPs issuing NOIDs immediately upon appointment, even when pre-appointment tax returns are outstanding. Also, some NOIDs are being issued before the Gazette or Companies House have been notified of the appointment.
Inappropriate use of NOIDs
There are some IPs using NOIDs…