Businesses face insolvency over tax debts
Businesses that don't manage their tax debts properly may face insolvency and be unable to take advantage of HMRC's Time to Pay scheme, warn experts.
As the 31 July deadline for paying national insurance contributions looms large, HMRC’s policy on allowing extended time to pay under the Business Payment Support Service (BPSS) may push taxpayers towards less conventional sources of funds to pay the tax due.
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Point taken
I thought about what you said and you're absolutely right. It wasn't a very balanced intro, particularly since HMRC confirmed that nothing has changed about the Time to Pay scheme. I've therefore amended it slightly so that hopefully it's less 'sensationalist'. We all get things wrong sometimes and I'm continually learning, so thanks for your input.
When I contacted HMRC about the scheme, they were helpful in confirming the details. In case anyone's in doubt about it, here is what they were able to confirm:
- There has been no change in HMRC’s policy or criteria for “Time to Pay (TTP) which has long been feature of HMRC’s approach to tax debt collection. The very successful Business Payment Support Service (BPSS) was introduced by HMRC in November 2008 to provide simple and fast access to HMRC’s decision making process around TTP for less complex and lower risk cases and it will continue for as long as it is needed.
- The service is available for all HMRC taxes, including VAT, Corporation Tax, Income Tax and NICs (PAYE).
- HMRC payment advisers are available seven days a week to take calls. The number is 0845 302 1435. Lines are open 8am to 8pm during the week and 8am to 4pm at weekends.
- HMRC’s website provides information on when and how to pay, what to do if people have problems paying HMRC, what happens if they don’t pay and where to get advice on dealing with debt.
- If circumstances change and the business becomes unable to make the payments covered by the agreement, as well as keeping up to date with any new liabilities, then it is important that HMRC is satisfied that the business continues to be viable as part of considering amending and/or extending any agreement. In such circumstances HMRC will need to ask more detailed questions so that they can be as sure as possible that the business will be able to meet any new arrangement.
- Where a business is requesting a repeat agreement, more detailed questions will be asked to ensure the business is viable and capable of sustaining a realistic arrangement. HMRC cannot agree time to pay where it does not believe the business would be able to pay tax due if given more time.
Every time this comes up...
... we get rent-a-quotes from so-called experts spouting nonsense.
It would also help if we could have non-sensationalist headlines. "HMRC’s ‘Time to Pay’ rules could push some businesses into insolvency" isn't even fit for The Daily Mail or The Sun. How about "HMRC’s ‘Time to Pay’ rules help hundreds of thousands of businesses stave off insolvency (but those who have no prospect of paying still go insolvent like they would have anyway)".