News

‘Time to pay’ tops £4.3billion

Struggling companies have now deferred paying £4.3billion of tax, according to the latest figures from HM Revenue and Customs (HMRC).

More than 249,700 ‘time-to-pay’ arrangements have now been approved, worth a total of £4.37billion since the Business Payment Support Service (BPSS) came into operation just over a year ago.

The scheme can be used by all types of businesses, including partnerships, and a total of £3.33billion has so far been repaid, leaving just over a billion pounds outstanding.

With the first arrangements now coming to an end, HMRC is now beginning to deal with requests for repeat deferrals, and reports indicate that it is taking a tougher line than before, with many new deferrals for a shorter period and with more stringent requirements on providing a repayment plan.

HMRC has also warned that action will be taken against companies that default after being granted a time-to-pay agreement.

Despite this, the Chancellor, Alistair Darling, confirmed in December’s Pre-Budget Report that the scheme would continue for as long as it was needed.

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