442% rise in tax funding for accountancy firms- Syscap

Syscap, a leading independent finance provider has reported a 442% surge in
accountancy firms agreeing loans to pay their tax bills.

The company, which is the appointed practice funding partner for ICAEW member
firms, recorded the rise during the first six months of 2010 compared to the
same period in 2009.

Tax funding now accounts for 47% of all the deals Syscap secured for the
accountancy sector in that period. In the first six months of 2009 just 17% of
Syscap’s financing solutions for the sector were for tax funding.

Philip White, chief executive of Syscap said: “These firms are perfectly
viable and creditworthy, yet the demand we have witnessed so far this year for
tax funding from accountancy firms is indicative of the ongoing cashflow
problems the profession is facing.”

White added that firms were finding sources of tax funding or deferral, such
as HMRC’s Time to Pay scheme, were being scaled back.

“Many firms that have already received one payment deferral from HMRC are
finding that they are much less amenable the second time round.”

HMRC has maintained previously that the criteria for the scheme has not

The taxman added Time To Pay has always been an option to those experiencing
temporary financial difficulty, but only for those with “realistic proposals to
pay off their tax debts over a relatively short period.”

Related reading

kevin-edwards rsm