Phoenix companies watch out...

I found the following copy on HMRC's web site today re businesses that will not qualify for the new NIC Holiday. A great example of non-plain English... I believe they are saying that Phoenix companies will not qualify?

Click on title to read complete article.

Businesses that aren't considered to be new

The test of a new business is based on the activities of the business. For the purpose of the holiday, the test requires you to look at the activities of the new business and to consider whether all, or most of them, have previously been carried on by them in another business during the six months leading up to the start of this business. Also you need to decide if the new business consists of activities, or mostly of activities resulting from the transfer of most of the activities of another business. In considering those activities, you will need to consider whether there are similarities that may exist between the products or services, the customers, suppliers and the employees of any previous or ongoing business and the new business.
Your business will not be considered to be new and therefore won't qualify for the NICs holiday if any of the following apply:

• at any time in the six months leading up to the start of this business, you carried on another business and the new business consists (or mostly consists) of activities that were undertaken in the other business
• you begin to carry on a business as a result of a transfer of another business and the activities of the new business (or most of them) were previously carried on in the other business
• you begin to carry on a business and before the business starts you enter into an arrangement to take on an existing business or part of an existing business at some point during the period of the NICs holiday

The meaning of “most of them” in this context means the greater part or the majority of the activities.