Small firms 'running out of time to pay taxman'
Officials at HM Revenue & Customs are taking an increasingly hard line on companies requesting more time to pay tax bills, a consultant has warned, despite the Government's insistence that firms are being given extra help as the fragile state of the British economy continues to affect their cashflow.
Syscap, an independent finance provider in the IT sector, said it had seen a doubling in the number of applications for HMRC's "Time to Pay" VAT scheme that were being rejected. The scheme enables viable businesses to defer paying their tax bills for a period at difficult times for their cashflow.
Data obtained by Syscap using a Freedom of Information Act request shows that HMRC rejected just over 11 per cent of applications for the scheme during the first quarter of this year. The figure for the same period of 2009 was just 5.3 per cent.
Philip White, chief executive of Syscap, said it was too early in the recovery for HMRC to begin withdrawing support for struggling businesses, particularly small and medium enterprises (SMEs).
"SMEs are still finding it incredibly hard to borrow money from their bank to pay HMRC VAT so news that the HMRC refusal rate has shot up is worrying," he said. "GDP growth of 0.2 per cent [in the first quarter of the year] shows the economy is weak, not strong, and that more needs to be done to help SMEs, not less."
One problem for businesses is that VAT bills are often calculated at the moment a customer is invoiced. Those bills may not actually be settled for several months.
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Bill Cosby: Isn’t it obvious why his accusers have stayed silent up until now?
- 4 Halle Berry takes ex-boyfriend Gabriel Aubry to court for allegedly trying to make daughter look less African-American
- 5 Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ferguson decision: Tea Party website mocks Michael Brown's family over T-shirt typo
Michael Brown shooting: Ten things we know – or know better – now the Ferguson grand jury's work is over
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Derren Brown on the disappointment of coming out: 'It’s not that people react badly to it – they really don't care'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£Attractive: Citifocus Ltd: High calibre individual with significant product d...
£Negotiable: Citifocus Ltd: Leading global bank seeks experienced credit analy...
£Attractive Package: Citifocus Ltd: High calibre individual with a high degree...
£Attractive: Citifocus Ltd: High calibre individual with superior academics an...