Rachael Singh, Accountancy Age, Monday 10 May 2010 at 09:10:00

Information given under the freedom of information act to Syscap shows HMRCtaking hard line on "Time to Pay" arrangements


HMRC is adopting a hard line on companies requesting "time to pay" theirtaxes, according to information supplied to IT finance providers andconsultants,Syscap.

Obtained by Syscap under the Freedom of Information act (FOI), the datareveals the number of rejected time to pay applications to the taxman hasdoubled compared to the same period last year, a report inTheIndependent claims.

Under the FOI, Syscap found HMRC rejected more than 11% of applicationsduring the first quarter of this year compared to just 5.3% for the same periodin 2009.

"SMEs are still finding it incredibly hard to borrow money from their bank topay HMRC VAT so news that the HMRC refusal rate has shot up is worrying," saidPhilip White chief executive of Syscap.

"GDP growth of 0.2 per cent [in the first quarter of the year] shows theeconomy is weak, not strong, and that more needs to be done to help SMEs, notless," he added.

Further reading:

Privatebusinesses call for Time to Pay increase

HMRCrejects 6000 time-to-pay pleas

Budget2010: Warning as Time to Pay scheme is extended