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FSB urges HMRC to speed up payments

03/09/2007  11:23:22

 


 

The Federation of Small Businesses (FSB) has called on Her Majestys Revenue and Customs (HMRC) to speed up some of its payments to small firms.

HMRC had previously offered £150 as a tax mitigation measure to businesses that completed their PAYE returns online.

However, as reported by Smallbusiness.co.uk, the service has now announced it is to delay the issue of these payments until December.

This move looks set to affect the tax planning and finances of up to 130,000 small businesses.

Bill Knox, FSB national taxation chairman, commented: "It is a very different scenario when the HMRC are owed money from small businesses - there is little room for a small business owner to tell the taxman that actually, it will take about four months to pay you because weve just been too busy.

"What we are saying is dont wave a carrot to small businesses if its going to be left in the air for months."

He continued: "The financial incentive may not be a substantial amount to larger businesses but is vital to smaller ones, and waiting over a quarter of a year for it is too long a time."

The HMRC recently proposed controversial measures that would allow money owed by taxpayers to be taken automatically from their bank accounts.

This would eliminate the need for the HMRC to pursue people through the courts to get hold of the tax payments due to them.


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