tax bills

SMEs are Paying Tax Bills on their Credit Cards

Businesses struggling to pay their tax bills are being pushed to pay by credit card rather than defer the tax under the Time to Pay scheme, accountancy firm UHY Hacker Young has claimed. The accountancy firm warned that firms which use credit cards to pay their tax bill are charged an additional 1.25 per cent on the payment by HM Revenue & Customs (HMRC). The Time to Pay scheme, launched in November 2008, to allow viable businesses to defer payments of VAT, corporation tax, PAYE or income tax to help them manage their cashflow during the economic downturn. “HMRC have been taking a much tougher stance on Time to Pay arrangements,” said UHY Hacker Young tax partner, Roy Maugham. “It is increasingly insisting that businesses pay tax on credit card first, before it will c... »

Tax

Struggling firms receive help paying tax bills

More than 20,000 small firms have used HM Revenue & Customs’ (HMRC) Business Payment Support Service to defer their tax bills since it launched at the end of November 2008. Announced in the Pre–Budget Report, the service helps struggling firms by allowing them to set up an affordable tax payment timetable. Under the scheme, HMRC will not apply any late payment surcharges where a deferment has been made, although interest will continue to be charged on outstanding amounts. According to HMRC, more than £350 million of tax, including VAT, PAYE and National Insurance, has already been deferred. The Association of Chartered Certified Accountants head of global taxation Chas Roy–Chowdhury said the service was of real benefit to businesses struggling to meet their tax ... »