PAYE security attacked
Alistair Darling
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.”
Read more:
HMRC’s
new powers will hit football clubs