One thing we've noticed in the office is the continuing successful usage of the 'Business Payment Support Service' by clients. This service was introduced late last year to assist businesses with tax payments by permitting payments to be spread over a period of time.
The service has been criticised however by those who say the extended payment terms put off the inevitable [business failure], and have been too easily obtainable, without suitable checks being made.
In fact, just this last week, we made a call on behalf of a client with a £2k VAT bill they could not settle - we stated the terms the client could settle over (4 months) and the arrangement was agreed, no further questions. In this instance, a perfectly viable business just having a short term cash flow problem.
Whatever your opinion on the scheme, for many out there its been the lifeline they've needed during the recession.
Its worth noting however, just because HMRC have 'gone a bit soft' on paying them on time, the deadline to get returns in (be that VAT, PAYE, CT, or self-assessment) remain fixed, and missing those deadlines will incur financial penalty.
Following all that I guess the message is if paying will be a problem, get the return completed and filed on time and speak with HMRC before the payment is due to agree a payment schedule that will work for both of you.
AS
No comments:
Post a Comment