Budget 2010 – Business Payment Support Service
The Business Payment Support Service (BPSS) that was introduced at the end of 2008 is to continue for the forseeable future.
Any businesses that are having difficulties making VAT, income tax, national insurance contributions, corporation tax, and pay as you earn payments can contact the BPSS helpline. The BPSS will review the businesses circumstances and if possible agree to requests for extended payment terms. HMRC have confirmed that they will not charge additional late payment surcharges in relation to any specific arrangements made using this service. Interest will remain payable where it applies. In the majority of cases HMRC are able to issue a decision within 10 minutes of the help they can offer a business having financial difficulties
The Chancellor stated in his Budget speech that “the scheme should be extended for the whole of the next Parliament”.
HMRC will also require businesses seeking Time To Pay (TTP) arrangements for arrears of £1m or more, to provide an Independent Business Review (IBR) in support of their request. It is expected that the new requirement will be implemented from April 2010 and HMRC will informally consult on how this will work. There will be no change for other businesses.