The new service, announced at the Pre Budget Report (PBR), gives businesses the opportunity to pay all their HMRC taxes, including PAYE, National insurance Contributions and VAT through payment timetables which they can afford.
A local example of how the service can help businesses includes an electrical business in Northumberland asked for time to pay their tax debt of just under £5,000. They were experiencing cash flow problems due to the current economic climate and were owed money. HMRC agreed their request. The business confirmed that this assistance will give them time to create a steady cash flow and resolve the current debt at the same time.
Financial Secretary to the Treasury Stephen Timms MP said "This is providing real help to business across the whole country. I am delighted that HMRC has been able to help more than 500 businesses across the region so far. This new scheme is helping businesses to stay open and keep their staff in jobs.
"I urge any business facing financial difficulty in these challenging economic times to pick up the phone and speak to an HMRC advisor. A short phone call could save hard working businesses time and money."
Time to pay was launched by the Chancellor of the Exchequer at the PBR in November 2008. The service is designed to assist all businesses that will be unable to pay their tax and in the majority of cases, HMRC will be able to make a decision in around 10 minutes.
