Businesses looking to defer paying their tax bills are feeling the squeeze with many finding it increasingly difficult to secure Time To Pay arrangements under the Business Payment Support Scheme (BPSS).
According to the latest HMRC figures, the percentage of all VAT, PAYE and Corporation Tax deferral applications turned down has doubled in the last year – up from 2.7% to 5.8% – rising from 6,760 to 8,550 cases.
New HMRC figures show a dramatic increase in the Time To Pay (TTP) refusal rate, alongside a drop in demand and ongoing concerns about the way the service operates.
The percentage of TTP requests refused during the first quarter of 2011 was 9.3%, compared with 2009 and 2010 when the refusal rate was just 2.7% and 6% respectively.
HMRC continues to play down the suggestion there’s been any tightening of criteria, despite arguments to the contrary.
On the Amril Blog we highlighted that over 186,000 businesses are finding it tough financially. We know of a few companies that have requested support from HMRC but have been refused that extra time to pay.
Some companies will find it tough in this economical climate, and we believe it is a case of supporting a company if at all feasible, not send them down the liquidation route, after all what does that accomplish, nothing.
If you are suffering from late payments or need someone to talk too, speak to Amril before it is too late. Many companies believe they can solve their issues independently and we all sometimes need that extra support and guidance. All too often a business leaves it far too late before taking action, if you are reading this don’t let that be your business. Take action and resolve the issues or get advice.