£220M cash flow boost for SW companies

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In its first six months, HM Revenue & Customs’ (HMRC) Business Payment Support Service (BPSS) has agreed tax deferment agreements with south west companies totalling more than £200 million.

The BPSS, announced by the Chancellor in November’s Pre-Budget Report, provides a fast track service that offers support to businesses needing more time to pay their tax bills. Budget 2009 announced that the service would be enhanced to allow viable businesses to have expected in-year trading losses considered when asking for time to pay their tax bill. 

In total, 15,190 time to pay arrangements with businesses in the south west were made, to spread tax payments totalling £220m. In Cornwall and the Isles of Scilly, there were 1710 cases, worth £21 million.

The Financial Secretary to the Treasury, Stephen Timms MP, said: “Cash flow is critical to business survival, and that is why, as part of its commitment to help the business community through these difficult times, the Government introduced the Business Payment Support Service last year. It’s good to see that with 15,190 arrangements now in place the Service is helping so many businesses in the South West by providing additional cash flow. 

“I urge any business facing financial difficulty in these challenging economic times to pick up the phone and speak to HMRC.  A short phone call could assist hard working businesses who might be concerned about cash flow.”

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