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Business Payment Support Service

HM Revenue & Customs Business Payment Support Service

In the 2008 Pre-Budget Report, the Chancellor announced a new service to help taxpayers who may find it difficult to pay their taxes in the current period of economic uncertainty. This is an extension of the existing Time to Pay facilities, with some relaxation of the requirements. In order to qualify, the taxpayer must be:

In genuine financial difficulty
Unable to pay their tax on time
Likely to be able to pay if they had more time in which to do so.

HMRC claim that the facility covers most taxes, including Income Tax, Corporation Tax, VAT, PAYE and National Insurance.

While an arrangement can be made after the due date has passed, this is much harder to achieve than setting it up in advance and will not prevent penalties due to late payment. If agreement is made in advance, no penalties or surcharges will be due and the taxpayer’s compliance record will not be adversely affected. Whether agreed in advance or not, interest will still be due as HMRC view this as commercial restitution rather than punitive.

If you would like more information, HMRC’s own guidance can be found on their website at www.hmrc.gov.uk/pbr2008/bus-payment-addinfo.htm. We will be delighted to assist with this if required.

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