HMRC takes hard line on Time To Pay
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).
AccountingWEB.co.uk members and business groups are sensing a shift towards a harder line approach, in spite of HMRC denying a change in policy.
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.
While 138,700 new arrangements worth £2.34bn were granted in 2010, HMRC claims there has been a 60% decline in demand for the scheme in December compared with its March 2009 peak.
However, the Federation of Small Businesses (FSB) has singled out TTP as one of the most effective and popular government schemes since its launch in November 2008. Since that time the initiative has allowed 395,400 bills to be deferred, worth £6.83bn.