| Demand for tax funding from accountancy firms rockets |
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21 June 2010 Demand for tax funding from accountancy firms rockets 442% rise in tax funding to sector in first six months of 2010 Syscap official funding partner to ICAEW Syscap, the UK’s leading independent finance provider and appointed funding partner to the Institute of Chartered Accountants in England and Wales (ICAEW), has reported a 442% surge in tax funding arrangements secured with accountancy firms in the first six months of this year, compared to the same period in 2009. According to Syscap, this rise is evidence of the pent-up demand from accountants for finance to assist with tax payments. In the first six months of 2010 tax funding has accounted for 47% of all financing solutions Syscap has secured for the accountancy sector in that period. In the first six months of 2009 just 17% of Syscap’s financing solutions for the sector were for tax funding. Philip White, Chief Executive of Syscap comments: “This is an enormous leap in tax funding we have made available to accountancy firms so far this year.” “These firms are perfectly viable and creditworthy, yet the demand we have witnessed so far this year for tax funding from accountancy firms is indicative of the ongoing cashflow problems the profession is facing.” Syscap explains that as the appointed practice funding partner for ICAEW member firms*, they have been working with accountancy firms to develop tailored solutions for the payment of tax bills. Philip White adds: “These firms are finding that previously helpful sources of tax funding or deferral, such as HMRC’s “Time to Pay” scheme, are being scaled back. Many firms that have already received one payment deferral from HMRC are finding that they are much less amenable the second time round.” “The increase in approaches we have received indicates that many in the accountancy sector doubt whether HMRC is a reliable source of assistance, and are now seeking alternative funding arrangements.” “Given that June and July are one of the busiest times of year for accountancy firms to seek VAT and other tax funding, we fully expect this trend to continue.” See coverage of this press release below: |
