Don't axe time-to-pay, say advisers
Recovery chiefs firms fear tax deferral scheme could be axed after the expected May general election
Insolvency experts have warned the government faces a “ticking time bomb” of
company collapses if a lifeline allowing businesses to defer tax payments is
withdrawn.
The Business Payment Support Service has helped more than 160,000 businesses
but recovery chiefs firms fear the scheme could be axed after the expected May
general election, the
Independent
reported.
Malcolm Shierson, a partner at Grant Thornton, said: “We expect the number
of liquidations to shoot up even further when the future government stops
extending the time-to-pay tax scheme.”
George Bull, head of tax at Baker Tilly, said: “I think to bring down the
guillotine after an election would be a grave mistake because the system has
worked really very well to help clients who want to pay, but cannot, to get more
time to pay.
“If the right was suddenly halted after an election that would be desperately
bad news.”
However, tax policymakers have shot down any suggestion the scheme will be
pulled abruptly.
A Treasury spokesman told the Independent: “The time-to-pay scheme
has been hugely beneficial for businesses facing difficulties and will continue
to run as long as necessary.
“Any suggestion that it will end suddenly and businesses forced to repay is
incorrect and runs counter to what the scheme was set up to achieve.”
Further reading:
Time-to-pay
arrangements top £4.3bn