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From 24 November 2008, H M Revenue & Customs have introduced a new, dedicated Business Support Service designed to meet the needs of businesses affected by the current economic conditions.
Their press release on the subject is as follows:
News Release - Business Payment Support Service launched.
If you're worried about being able to meet tax, National Insurance, VAT or other payments owed to HM Revenue & Customs (HMRC), or you anticipate that payments coming due will cause you problems, you can call our Business Payment Support Line below seven days a week.
Our staff will review your circumstances and discuss temporary options tailored to your business needs, such as arranging for you to make payments over a longer period. We will not charge additional late payment surcharges on payments included in the arrangement, although interest will continue to be payable on those taxes where it applies.
Please note: The Business Payment Support Line is for new enquiries only. If we've already contacted you about an overdue payment, or if you already have a payment arrangement with us please see below for what to do next.
When to contact the Support Line
If you have payments due now or in the near future, the sooner you get in touch, the sooner we'll be able to see how we can help. If your payment isn't due yet, you can ring the Support Line nearer the time once you are clear about whether you will be able to pay us or not. But remember that you need to get in touch with us in advance. Don't wait until your payment is overdue.
Giving you a quick decision
In most cases we should be able to give you a decision in about ten minutes. For larger payment debts and those that are more complicated we may need to have a longer, more detailed discussion with you and may need to call you back before finalising payment arrangements.
Information we'll need
To help us deal with your call as efficiently as possible, please have the following information to hand:
- your tax reference number
- details of the tax that you are or will have trouble paying
- basic details of your businesses income and outgoings
Our advisers will only ask for the information we need to make a decision.
HMRC Business Payment Support Line
Tel 0845 302 1435
Open Monday - Friday 8.00 am to 8.00 pm, Saturday and Sunday 8.00 am - 4.00 pm.
Please note: The Support Line is intended for new enquiries only. If we've already contacted you about an overdue payment, or if you already have a payment arrangement with us please see below for what to do next.
If we've already contacted you about an overdue payment or if you already have a payment arrangement with us
If we've already contacted you about an overdue payment it's important that you call the original office that contacted you. They will be ready to discuss payment arrangement options with you and explain how to avoid legal action being taken.
If you already have a payment arrangement with us but have additional concerns about what you can pay, the office you've been dealing with will be able to discuss further options with you. You'll find the contact details you need on the correspondence sent to you.
If you've received a warning letter about court action
If you've received a warning letter about court action and can't get through to the office that sent it, you can call the Business Payment Support Line number and our advisers will try to help.
If we are already taking court proceedings against you
We are always ready to enter into realistic time to pay arrangements rather than go to court. But there will sometimes be cases where our assessment is that we should go ahead with court action, and in those circumstances we will explain why. Please get in touch with the office named on the correspondence we have sent you to discuss your concerns.
If you have recently made a payment to us and are now experiencing cashflow problems.
We cannot repay amounts that you have previously paid to us - unless your tax bill changes. You may however want to get in touch with the Business Payment Support Line to discuss time to pay arrangements for any further payments when they are due.
**** End of press release ****
The scope of the service
This new service is designed to assist all businesses (large and small) that will be unable to pay their tax. The service is primarily available to self-employed people and companies but can be used by anyone having difficulty in meeting their tax liabilities. It covers most taxes and duties including Income Tax, Corporation Tax, VAT, PAYE and National Insurance.
In order to qualify the business will be:
- in genuine difficulty
- unable to pay their tax on time
- likely to be able to pay if HM Revenue & Customs (HMRC) allowed them more time
HMRC will look to be flexible and agree Time to Pay arrangements on a case-by-case basis to bring the business's tax back up-to-date on a timescale that is reasonable and appropriate to the situation.
We would very much encourage all clients to make use of the service where it is appropriate to do so.
Using the service on a client's behalf
We can discuss your tax affairs with HMRC. We can also agree a payment arrangement with them on your behalf - but HMRC may also need to speak to you to set up payments through direct debit.
Surcharges
VAT default surcharges will not be charged if the business contacts HMRC before the payment is due and agrees a Time to Pay arrangement. Entering into the Time to Pay agreement will not be treated as a default so it will not extend the 12-month rolling period nor will the default percentage increase because of the Time to Pay arrangement, provided the terms of the arrangement are adhered to.
Similarly, a surcharge can be avoided on late payment of income tax where a Time to Pay agreement is entered into before the relevant surcharge date AND the terms of the agreement are adhered to.
Reviewing or extending the arrangements
If the circumstances of the business change and they become unable to make the payments covered by the agreement, as well as keeping up to date with any new liabilities, then HMRC will want them (or their agent) to get in touch with them before they miss any payment.
Provided they are satisfied that the business continues to be viable HMRC will consider amending and extending the agreement. If the agent or the business is unable to satisfy them on this they will then have to consider other courses of action, such as legal action or insolvency proceedings.
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