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Tuesday
Mar302010

HMRC Dedicates Resources To Assist In Business Tax Planning

A recent client asked me about how approachable HM Revenues & Customs would be when it comes to handing potential delays in being able to pay taxes on time. I thought I’d share with you some of my thoughts and the principles in which HMRC adhere to in these kinds of decisions.

Not too long ago HMRC set up a function that would act in a role similar to a customer services support unit. The unit is called the Business Payment Support Service (BPSS). In April last year, they added a couple of extra functions to the team in light of the economic downturn and understanding that some businesses will be facing bleak times ahead.

HMRC set the system up to be firm but fair. If a company is struggling to make ends meet and finds that it is unable to pay corporation taxes, VAT or PAYE and national insurance contributions when they fall due, the company can contact the BPSS to find a solution.

Despite it sounding like a way to dodge taxes, it isn’t. Businesses need to reach an agreement with the BPSS to either defer the payment deadline or make instalment payments over an agreed period of time. Usually BPSS’s decision will be made within 10 minutes. It might sound daunting to think that the decision for your business’ viability hangs decision of the taxman, but HMRC do assure a fair decision based on your previous reliability and forecast trading activities.

Many small businesses may have recently found themselves in a position where they are worried about being able to pay their taxes either on time or at all. If you are one of these small companies, it’s time to sit down and take stock of where you feel the business is going. One of the St Matthew advisors will be happy to help you through this process and assist you should you need to contact HMRC to request for help in paying your taxes.

 

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