Take Advantage of the Business Payment Support Service
ACCA has advised taxpayers to take advantage of the Government’s recent scheme, the Business Payment Support Service (BPSS).
Launched by the Chancellor in his Pre-Budget Report in November 2008, the BPSS aims to:
- Help those struggling in the current economic climate to pay tax owed, especially given that the loan rates on offer from the taxman are discounted.
- Provide a fast and streamlined service for arranging to pay the tax man to an affordable timetable.
- Help companies struggling to meet their tax costs through allowing greater flexibility in paying their taxes, ensuring their continued existence in the longer term.
However, ACCA points out that the scheme is not just available to businesses, but also to individuals who are struggling to pay back over-payments of tax credits.
Chas Roy-Chowdhury, head of global taxation at ACCA, said:
“Given the current economic climate, ACCA believes it is important to raise awareness of the Business Payment Support Service and ensure that people struggling are able to take advantage of the scheme by seeking advice and arranging suitable and realistic ways to pay tax bills, all the while utilising the lower interest rates provided. Some people are unaware of the service and thus, they are missing out on the opportunities to ease their tax burdens. Similarly, tax payers should also be aware of the reduced interest rates on their repayments and how they might respond, with some rates such as income tax down to as low as 4.5%”.
The interest rates on late payments have been reduced to ease the pressure on both businesses and individuals. Income Tax, Corporation Tax, VAT, PAYE and National Insurance are some examples of the tax and duties covered by the service. Taking advantage of this service is particularly pertinent given the upcoming self assessment deadline on the 31st January and then the 28th February surcharges and VAT surcharges. It is also important for both businesses and individuals to consider their options regarding tax repayment, in light of the new interest rates, and proceed accordingly.