HM Revenue & Customs expects businesses to arrange their affairs and finances to ensure that returns are submitted and any tax liabilities and other payments are made by the due dates. HMRC do recognise however that there may be occasions when, as a result of circumstances outside your control, this isn’t possible – especially during the current economic conditions.

In November, HMRC introduced a new, dedicated Business Payment Support Service (BPSS) designed to meet the needs of businesses and their owners affected by the current economic conditions. This new service will give targeted support to businesses to help them arrange to pay their HM Revenue & Customs (HMRC) tax bill to a timetable they could afford. The BPSS will allow businesses who are worried about making Corporation Tax, Income Tax, VAT or PAYE and National Insurance payments to delay payment without facing penalties or surcharges.

HMRC will arrange for businesses to make payments over a longer period. Despite no late payment surcharges resulting on payments of established arrangements, interest will continue to be payable at the current rate of 4.5% on unpaid Income Tax, Corporation Tax, PAYE and NIC and VAT.

The 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 who is having difficulty in meeting their tax liabilities.

Stephen Timms, the Financial Secretary to the Treasury said “By speaking directly to an HMRC adviser businesses should be able to agree an affordable payment timetable without incurring any extra charges, saving hard working businesses both time and money.”

If you are worried about being able to meet a liability or other payments owed to HMRC, or you anticipate that payments coming due will cause you problems, you can contact the Business Payment Support Line. Alternatively, we will be happy to assist you by negotiating on your behalf with HMRC.

If you have payments due now or in the near future, you should contact HMRC as soon as possible as payment arrangements must be made in advance f the due date of payment.

To qualify the business / you will be:

in genuine difficulty
unable to pay their tax on time
likely to be able to pay if HMRC allowed them more time

In most cases HMRC should be able to give you a decision in about ten minutes. For larger payment debts and those that are more complicated HMRC may need to have a longer, more detailed discussion with you and may need to call you back before finalising payment arrangements.

The business payment support line is available on 0845 302 1435 between 8am to 8pm on Monday to Friday and 8am to 4pm on Saturday and Sunday.

More information on this service is available here.