Taxman can wait for struggling firms

340 businesses given extra time to pay

HUNDREDS of struggling local businesses have been given extra time to pay their tax bills under a Government scheme to help them survive the recession.

According to Her Majesty’s Revenue and Customs, 340 Oldham business have delayed payments worth £5 million under credit-crunch busting time-to-pay initiatives.

Firms have been able to negotiate an affordable repayment timetable with the taxman as well as avoiding a 5 per cent surcharge for late payment.

Critics claim that some of the raft of measures unveiled to keep British business afloat have not yet been introduced or are not making a difference.

And businesses are still encountering problems lending money from banks.

But financial secretary to the treasury, Stephen Timms, insisted that the Government is determined to support businesses through these challenging economic times.

Carol Hopkins, local area manager for Greater Manchester Chamber of Commerce said: “The current business environment is particularly tough for all concerned.

“Small to medium-sized enterprises need all the help available to survive the downturn.

“With this in mind, Greater Manchester Chamber welcomes the HMRC’s initiatives allowing businesses to delay tax payments.

“Government schemes such as this can really help businesses get back on track — proving the value of government support to businesses in helping the UK economy recover.

“In addition, Greater Manchester Chamber is doing all it can to assist local businesses, including organising seminars and training courses to help firms survive the recession — and informing companies of any government initiatives available to them.”

HMRC says the scheme is providing real help to business across the whole country and welcomed the large numbers who have taken up the offer. It is hoped the move will allow businesses to stay open and keep staff in jobs.

HMRC chief executive Lesley Strathie said: “We are committed to supporting businesses experiencing temporary difficulties and understand that some businesses want to talk to us about the amount of time they need to pay their HMRC taxes.

“Business people who find that they need more time to pay will receive a sympathetic response.”

HMRC said any business facing financial difficulty in these challenging economic times should speak to an HMRC adviser.

A spokesman added: “A short phone call could save hard-working businesses time and money.”