BusinessBusiness RecoveryTime to pay lifeline open to accountancy firms

Time to pay lifeline open to accountancy firms

Taxman has extended the Business Payments Supports Service to large partnerships, allowing accountancy staff a temporary reprieve from crippling tax payments

The taxman has now announced the Business Payments Support Service will be
fully extended to all partnerships with immediate effect.

This will allow members of an accountancy practice unable to pay their tax
bills due to cash-flow problems facing their firm, to arrange a joint
time-to-pay agreement with the tax authorities.

“This development is a major breakthrough for any sizeable practice which
might be feeling pressure on cash flow in the current climate,” said Richard
Mannion, national tax director at Smith & Williamson.

“Inevitably, problems and inconsistencies occurred when there were say, 50,
100 or more individual partners, typically spread over different offices each
trying to draw up their own arrangement with their local tax inspector. The old
system just didn’t work.”

The BPSS largely overlooked the needs of larger partnerships where the
companies’ taxable profits are all allocated to the individual partners.

This meant the partnership itself had no income tax liability and HMRC’s
systems operated on the premise that each individual partner should make a
separate time to pay application.

The partners must be able to demonstrate they are unable to pay their
individual liability in full but that it can be repaid within 12 months, Smith
& Williamson added.

Related Articles

Smith & Williamson appointed administrators of 4Children

Accounting Firms Smith & Williamson appointed administrators of 4Children

1y Richard Crump, Writer
Smith & Williamson administrators called in to Caterham

Accounting Firms Smith & Williamson administrators called in to Caterham

3y Richard Crump, Writer
Smith & Williamson administrators called to criticised school

Business Recovery Smith & Williamson administrators called to criticised school

4y Rachael Singh, Writer
Top 50 +50 2011 analysis: Insolvency

Business Recovery Top 50 +50 2011 analysis: Insolvency

6y Rachael Singh, Writer
Has Time to Pay been shown the backdoor?

Business Recovery Has Time to Pay been shown the backdoor?

7y Rachael Singh, Writer
HMRC to stop publishing Time to Pay statistics

Business Recovery HMRC to stop publishing Time to Pay statistics

7y Rachael Singh, Writer
Taxman owed nearly £1bn from Time to Pay

Business Recovery Taxman owed nearly £1bn from Time to Pay

7y Rachael Singh, Writer
Ex-KPMG senior manager joins Smith & Williamson

Business Recovery Ex-KPMG senior manager joins Smith & Williamson

7y Rachael Singh, Writer