Stephen Timms, financial secretary to the Treasury, has said that over 60,000 businesses have agreed time to pay tax arrangements with HMRC totalling more than £1BN.
Firms must pay interest on the outstanding amount. However, they can avoid extra penalty charges. Late payments for income tax, national insurance contributions and capital gains tax are charged at 3.5%, corporation tax is charged at at 2.5%.
The average deferral time is between three to six months.
These arrangements are of some benefit to small firms in particular, who are experiencing difficulties obtaining credit during the current recession/depression.
Let us trust that as and when HMRC outsource its debt collection activities and sell on its outstanding debt to private debt collection agencies, these private agencies are equally forgiving of the delays in settling the debts.
Tax does have to be taxing.
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"
personally, i dont get a choice when i pay my tax, they recd the cash through either profits or deducted from staff wages so should pay when its due. if they r in the shit go bust thats the beauty of capitalism
ReplyDelete