Half of all deferred business taxes are VAT
Total amount tops £2.5bn
Value added tax makes up 42% of business taxes deferred under agreements
struck with the Business Payment Support Service.
A total of £2.5bn in tax payments have been deferred by 141,000 struggling
businesses, Business Credit Management reports.
The BPSS was set up by the Chancellor in the pre-Budget report to stop
cash-strapped businesses from going under in the recession.
Firms can also request a deferral of PAYE and NIC payments, and are typically
granted repayment extensions of between three and six months.
The deferred VAT makes up 1.5% of the total predicted VAT take of £64bn for
2009-10.