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.
Royal Marine Sgt Alexander Blackman jailed for life for murder of Afghan insurgent
Ja Rule forced to deny leaving wife for prison cell mate
Nelson Mandela: 11 inspirational quotes to live your life by
Nelson Mandela: From 'terrorist' to tea with the Queen
Crash pilot who threatened Ukip leader Nigel Farage found dead
- 1 Cameron's freebie to apartheid South Africa
- 2 Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
- 3 Sherlock series 3: Benedict Cumberbatch and Martin Freeman provide teasers for the biggest comeback in British television
- 4 A forgotten episode in Russian history leaves links with the Philippines
- 5 People will try to reduce Mandela to a lilting reggae tune about ‘love’. They will fail
- < Previous
- Next >
iJobs Money & Business
£80000 - £100000 per annum + benefits + bonus: Harrington Starr: Project Manag...
£50000 - £60000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£30000 - £40000 per annum + Bonus and Benefits: Harrington Starr: A global Con...
£150 - £250 per day: Cornwallis Elt : iPhone Rollout- Blackberry Enginee...