Employment Tax Expert

The Time to Pay arrangements that have helped many a business struggling with cashflow may be a target for cutbacks in the Budget next week. There have already been moves to place restrictions on those wishing to delay payments in respect of £1m by placing requirements on these companies to be reviewed by one of a panel of approved accountants, these then provide a report to support or otherwise the companies claims. However, this latest rumour could cause a lot more problems with the economy still fragile but in order to get this into context, this employment tax expert must also state that they disagree with time to pay arrangements for PAYE, VAT and CIS deductions – controversial you may think but pause for a moment – this money has never belonged to and never will belong to the company, the Company is simply an unpaid collector of taxes and the payments should definitely not be part of Company cashflow. This apart Corporation Tax and Self Assessement tax should still have a strictly controlled ability to apply for time to pay arrangements as this could mean the difference between companies staying afloat and getting through the recession and folding. These latter points cannot be underestimated, so long as the company in question represents something that is a viable proposition, so fingers crossed the sweeping rumour that Time to Pay arrangements will go unilaterally is just that … a rumour!