60,000 firms receive 'time to pay'

Over 60,000 businesses have agreed 'time to pay tax' arrangements with HM Revenue and Customs (HMRC) totalling more than one billion pounds.

The Business Payment Support Service (BPSS) announced by the Chancellor in November's Pre-Budget Report provides a fast track service for businesses who need more time to pay their tax bills. These businesses can quickly agree terms they can afford with HMRC over the phone.

Stephen Timms, Financial Secretary to the Treasury said: "I'm delighted that HMRC's Business Payment Support Service is proving such a huge success, already providing a cashflow boost worth over a billion pounds to UK businesses.

"This service is delivering the kind of tangible support that business needs at this time. I would urge any business anticipating or experiencing difficulties paying their tax to call the helpline and get a quick response tailored to their specific needs."

Time to pay

The Business Payment Support Service (BPSS) offers enhanced support to businesses finding it difficult to make tax payments on time, including corporation tax, VAT, PAYE, income tax and national insurance contributions.

The majority of businesses who have used this arrangement have agreed repayment timetables spread across three to six months.

Construction firms account for a quarter of those benefiting from these new arrangements, with many retailers and manufacturers also agreeing payment schedules they can afford.

Businesses can call HMRC and in the majority of cases get a decision within 10 minutes on the help they can receive. The BPSS is open to all businesses in temporary financial difficulties and can be used to spread tax due now over a period which reflects the business' circumstances.