Firms borrowing to pay tax bill increases

Accountancy firms’ requests for funding their tax bill has doubled, according
to one finance provider, including one firm requesting half a million pounds to
help settle a bill with the taxman.

said it had 50 requests from firms to fund tax and VAT payments prior to the 31
January deadline, compared to 25 a year earlier.

One firm had requested £500,000.

Syscap’s Philip White said a rapidly increasing number of requests suggested
that HM
Revenue & Customs’
approval rates for “time to pay” tax
deferrals had peaked.

“In the last month we have seen a marked increase in the number of
accountancy firms approaching us to secure funding to meet tax obligations
either because HMRC has rejected their application to the scheme or because they
have taken that firm off the scheme,” said White.

“We expect the number of requests for help with tax funding to increase
rapidly as we approach 31 January.”

“Businesses can’t take HMRC for granted and accountancy firms are certainly
no exception.”

Further reading:

Bookbinder folds as HMRC rejects time-to-pay

HMRC rejects 6,000 time-to-pay

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