The end is nigh for Time to Pay?11th June 2010
We’re all aware that the most pressing priority of the new coalition Government is to deal with the country’s massive deficit and ahead of the June 22nd Emergency Budget speculation is rife about what schemes will be axed to help achieve this.
We at Insight have been singing the praises of the HMRC ‘Time to Pay scheme’ for some time now and many businesses have enjoyed the benefit of deferring tax payments of more than £5bn in total on ‘agreed terms’ rather than facing hefty late payment penalties when they can’t pay. Indeed we have used the scheme through the Business Payment Support Service very successfully for a number of clients.
In a recent survey of SME senior decision makers, 30% said they expect HMRC to withdraw the scheme with a further 31% believing it would continue for existing users only.
With many businesses relying on Time to Pay as a ‘secondary banking facility’ to ease an otherwise difficult cashflow, one thing that is clear is any withdrawal of this service may have serious repercussions which could result in terminal insolvency for many businesses. It is critical that if the scheme is withdrawn or reduced in scope it is done very carefully indeed.
One of our key areas of expertise at Insight is the management and improvement of cash flows and reducing businesses financial risk. Get in touch if we can help in anyway.