Business is paying up!
Figures from HM Revenue and Customs show that the sum deferred in tax payments by the Business Payment Support Service has now topped £3bn (click here).
The interesting stat though is that around £2bn has already been paid back and HMRC says around 90% of what was expected to be repaid has arrived on time. That’s a failure rate of only one in ten. A huge proportion of those entering into deferral arrangements are being their dues as they said they would.
It strikes me that’s much better than HMRC could have hoped for. It could be a sign of something else – that the taxman is actually striking realistic deals over when deferred tax should be paid.
The worry though is that businesses are paying up but putting themselves under enormous strain to do it fearing that they won’t get a second chance once they’ve used the service.
It’s worth noting that around that there’s around £300m locked up in repeat deferrals.
If your struggling to pay up even though you’ve deferred let us now how well HMRC has dealt with your case.