Online News - Business News - Date: October 2009
Taxman waiting for £286m
HM Revenue & Customs is waiting on £286m in corporate taxes as the Business Payment Support Service scheme comes into play, essentially allowing companies to delay their tax bill.
It has made sense for businesses to defer payments to the taxman and instead use the money to make a short term repayment of potentially far more costly alternative forms of borrowing, such as an overdraft. We understand more than 16,000 businesses in Yorkshire have delayed both corporation tax and VAT payments through this initiative. Most arrangements have made over the phone with approval usually taking minutes and questions are now being asked as to whether HMRC have carried out enough due diligence in making these agreements.
Although the scheme can be used by many, it is clear that HMRC are intending to take a tougher line with companies seeking to defer tax payments more than once.
A HMRC spokesman said: “Where businesses ask HMRC for a further rescheduling of tax payments, it is correct that they would be asked additional questions."
“HMRC has a duty in these circumstances to find out what other steps a business has taken to arrange for payment of all its debts,” he added.
Please contact us if there are any aspects of HMRC’s scheme that you would like to discuss.
For further information, please contact us on +44 113 389 6200 or email enquiries@kirknewsholme.co.uk
Top
Back