New Business Payment Support Service

deanshepherd

The blurb:

HMRC has introduced a new Business Payment Support Service, which is designed to assist those businesses whose cash flow has been adversely affected by the economic downturn.

The service allows business owners who are concerned about making their tax, national insurance and other payments, to contact HMRC to discuss a range of payment options tailored to their business needs.

The scheme includes a Business Payment Support Line for new enquiries, which is available on 0845 302 1435, and is open from 8am to 8pm Monday to Friday, and 8am to 4pm at weekends.

A client of mine phone up yesterday and is allowed to pay their corporation tax liability off in ten equal instalments. Agreed instantly over the phone - no questions asked!

Could be very handy.

jilbo

Many thanks for sharing that with us Dean, I know that will be welcome news to at least one of my clients!

Dean

To the genuine client, this is helpful. However, I think this will turn out to be another government 'mistake'.

If someone faces financial difficulties adding to their debt worries won't help, it'll just pro-long the inevitable and in the long-term add to public debt.

MiPs need to consider their ethical positions before advicing on these terms.

Regards

Dean

Poodle

Hi Dean

I totally agree with you on this and to be honest I was expecting more calls on this than the VAT.

I suppose the government have taken the view that if they did not do anything, some people/organisations who would not/could not pay tax would site the credit crunch as an excuse when taken to court.

You could say that by making the offer and with people calling in it does save on admin/court fees etc. and at least with something being paid as opposed to possibly nothing.

I understand that they a waiving penalties as well and only charging interest is that what your client agreed?

CT and IT are one thing VAT on cash accounting schemes are another


Poodle

deanshepherd

Dean wrote: »

MiPs need to consiered their ethical positions before advicing on these terms.

In what way Dean?

deanshepherd

Poodle wrote: »

I understand that they a waiving penalties as well and only charging interest is that what your client agreed?

Yes. This client did it all off their own back and to be honest could have quite easily paid their tax on the due date. However, the improvement in their cash flow position means they are now taking on an additional employee to improve their marketing.

10 years ago HMRC were more open to agreeing time to pay arrangements. At some point they took the decision that they no longer wished to be financiers and made it really difficult. Remember those personal asset statements?

It now appears that they have been given the green light to agree instalment options and I think it would be negligent of us not to advise our clients that this is available to them.

Dean

deanshepherd wrote: »

In what way Dean?

Granted the client can get the advice that these settlement ‘terms’ are in place on their own accord but I can’t help but feel it could cause trouble for a member in future.

Take for example; a client within the construction industry, owing substantial amounts to the Revenue.

Maybe I’ve become too pessimistic but if you bring to the attention of this client the fact that these terms are in place; are you not knowingly aiding to the client to not pay his tax liability. If he can’t afford to pay his tax now, you know his sector has had a big down turn so his profits are reasonable to assume will reduce and therefore he will be unable to meet his obligations in the future.

Say you assist in obtaining these arrangements; he continues to trade and ‘forgets’ to meet a payment date, do you submit a SOCA report? You are then involved with ‘tipping off’ and potentially criminal prosecution if caught doing so! On the upside you lose the client to Joe Blogs down the road. Oh the joys of being a qualified individual trying to protect his reputation.

I guess I just dislike Labour’s ‘too good’ view and that their politics appear to come from hast as opposed to rational decision making. I also get the feeling ‘we’ as advisors in the ‘private’ sector are right in the firing line when things go wrong.

Lastly, in fact - don’t get me started on the media!

Regards

Dean

Poodle

Dean wrote: »

Lastly, in fact - don’t get me started on the media!

Oh go on. Do you think that there could be an incy wincy thought behind the recession being media led?

Poodle

Dean

Poodle wrote: »

Do you think that there could be an incy wincy thought behind the recession being media led?

Just an icle wicle bit :001_smile:

Regards

Dean