Time to pay scheme ‘must not be axed’
Insolvency experts have warned that many businesses will collapse if the government ceases to allow firms to defer tax payments.
The Business Payment Support Service has helped more than 160,000 businesses but recovery chiefs firms fear the scheme could be axed after the expected May general election
“I think to bring down the guillotine after an election would be a grave mistake because the system has worked really very well to help clients who want to pay, but cannot, to get more time to pay. If the right was suddenly halted after an election that would be desperately bad news,” said George Bull, head of tax at Baker Tilly.
The latest figures revealed that just under a quarter of a million time to pay arrangements, deferring tax payments of £4.3bn have been agreed.
However, tax policymakers have shot down any suggestion the scheme will be pulled abruptly and commented to the media.
“The ‘time to pay’ scheme has been hugely beneficial for businesses facing difficulties and will continue to run as long as necessary,” said a Treasury spokesman
“Any suggestion that it will end suddenly and businesses forced to repay is incorrect and runs counter to what the scheme was set up to achieve.”
