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Wednesday, 5 May 2010

Unwinding the Time to Pay Scheme: What Begbies Traynor Really Wants!

From The Mail on Sunday business paper 2nd May 2010

"Meanwhile, Begbies Traynor is preparing a lobbying campaign to warn the winner of the General Election not to devastate small businesses by scrapping the 'time to pay' tax scheme.

Begbies fears that dropping the flexible payments programme, which is used by 216,000 companies, would double the number of corporate bankruptcies overnight.

Executive chairman Nick Hood says the enterprise community is 'seriously worried' about how the initiative could be unwound under the pressure of government spending cuts.

He adds: 'The impact will be devastating if it's not done sensitively. We are calling for a constructive and considered exit.'

'Time to pay' has helped British companies defer £5bn since it was brought in last year. Hood says the aid is essential for small and medium-sized firms struggling to position themselves in preparation for an economic recovery".

So, they DON'T want a fast exit but are they trying to plant the idea that it should be a "constructive and considered exit?" In other words please get rid of this pesky scheme?

Either way, right now it is apparent to KSA that HMRC has backed off winding up companies in the election period.

For example this week we had a client tell us that HMRC Scotland had accepted a time to pay deal for the £24,000 of PAYE owed. HMRC agreed to take £200 per month. You read that right a 10 YEAR deal.

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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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