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31 Mar 2010
The ICAEW has attacked Budget measures forcing companies to offer security against unpaid tax bills claiming it could force many out of business.
Frank Haskew of the ICAEW told the Financial Times should HMRC should helping companies that have hit difficulties where the underlying business is viable.
The measures also include a new criminal offence if companies fail to provide security.
It is believed the new rules are aimed at Pheonix companies attempting to dodge their tax obligations, but experts believe they could capture perfectly legitimate companies.
Last week Accountancy Age reported that the new rules could hit struggling football clubs particularly hard as they use PAYE and National Insurance payments as part of their cashflow management.
At the time Francesca Lagerberg, head of tax at Grant Thornton, said: “This is all part of a general drive to nail down tax payers. This will be an issue for any organisation where they are not paying their balances on time.”
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Briefings
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Visitor comments Add your comment
PAYE Security
I couldn't agree more with Mr. Cairns. In the industry that I work in I know of numerous companies that have used the "Bank of HMRC" to fund uncompetative, unsustainable rates only to go out of business, owe thousands of tax but allowed to start up again using pre-packs.
Posted by: JC Gunn ACCA, FFA, 31 Mar 2010 | 00:00
PAYE Security
A vast amount of tax revenue is lost every year by business funding their cash flow by not paying taxes on time,going under and leaving the rest of us taxpayers to cover the short fall.
This is not an accident ,it is premeditated theft and I for one am pleased to see the new rules introduced
Posted by: James Cairns BSc FCA, 31 Mar 2010 | 00:00