Now we have 0.01% growth, and the recession is officially ‘over’, HM Revenue & Customs (HMRC) seems to be toughening its stance on payment and appears to be rejecting an increasingly large number of applications for the scheme.
Chancellor Alistair Darling stated that ‘Time-To-Pay’ will be there “for as long as is needed” but this is questioned by figures obtained by
accountancy firm Wilkins Kennedy – the money owed under the scheme has reduced from £1.15billion in April 2009 to £1.01billion at the end of November 2009.
It seems that arranging a ‘Time-To-Pay’ deal in the current climate is now more difficult than ever before.
Some key ‘Time-To-Pay’ statistics:
- To date c. 240,000 businesses have been able to reschedule their crown debt;
- 60 per cent of these arrangements are for three months or less;
- 1 per cent of arrangements are for 12 months or more;
- 8 per cent of businesses which have an arrangement under the scheme have failed to make ANY monthly payments.
Presenting a workable, robust and deliverable case to HMRC will greatly improve your chances of obtaining their support.
- Following the Pre-Budget Report the ‘Time-To-Pay’ scheme has been extended to include partnerships;
- From 31 January 2010 all unincorporated businesses from sole traders to large partnerships will be required to make payment on account for their self-assessment tax;
- The VAT rate has returned to 17.5 per cent leading to a rise in payments due to the revenue;
- The 0.5 per cent rise in National Insurance (NI) contributions will further increase the crown liabilities burdening businesses;
- Where tax arrears exceed £1million there will be a requirement for an Independent Business Review (IBR) to be conducted to establish a company’s needs.
We are happy to assist in arranging time to pay agreements.