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5 April 2010 Terms of new review for large "time to pay" requests will deter businesses from applying Independent Business Reviews will be needed on all requests for credit over £1m from April 6 Forcing large “time to pay” requests to be supported by an expensive Independent Business Review (IBR) means fewer businesses will be able to rely on HMRC for tax payment support warns Syscap, the UK’s leading independent finance provider. “Time to pay” is designed to allow viable businesses to defer tax payments during the recession and from April 6 all businesses hoping to defer over £1m under the scheme will need to pay for an IBR. HMRC has disclosed that it thinks that an IBR will cost as much as £75,000 with the average cost estimated at £42,500. The cost must be borne in its entirety by the business applying under “time to pay”. Philip White, Chief Executive of Syscap comments: “This is a significant change in procedure announced by HMRC that will have a big impact on the success rate of large “time to pay” applications.” “The reasoning behind implementing this can be dressed up by HMRC however they like, but the bottom line is that this will result in a significant scaling down of the “time to pay” scheme.” According to HMRC the IBR will help them determine whether a company is viable enough to be eligible for an agreement, and if so what the terms of the agreement will be. Philip White says: “Businesses looking to defer more than £1m will understandably fear that the IBR will be used to refuse them credit on grounds of non-viability or to impose harsher and more restrictive credit terms on them.” “This review gives all the impressions of being HMRC’s latest ploy to put off applicants.” See coverage of this press release below: |
