HM Revenue & Customs has introduced a dedicated Business Support Service in order to help businesses affected by the current climate.

Difficulties in paying liabilities
The service has been put in place for businesses that are concerned that they will not be able to meet tax, national insurance, VAT or other payments, either currently owed to HMRC, or becoming due for payment.

HMRC Business Support staff will review the individual circumstances of the business and then discuss temporary solutions tailored to those circumstances, such as arranging for payments to be spread over a longer period.

HMRC will not charge late payment surcharges where the payment dates have been agreed in the arrangement, but late payment interest will still apply from the original due dates.

HMRC decisions
HMRC will require certain information, such as the business reference number, details of the tax that the business has (or will have) trouble paying and basic details of the business income and outgoings. Only information relevant to the decision making process will be requested.

In the majority of cases, decisions will be given in approximately 10 minutes. For more complex situations, or where large payments are due, HMRC may need more detailed information and finalising payment arrangements may take longer.

Businesses with agents
Accountants who are authorised to speak to the Revenue on behalf of the business may speak to the Support Team on behalf of their client. However, there may be certain cases where the Revenue need to speak directly with a representative of the business, for example, if further information is needed, or to put in place a direct debit arrangement.

Partnerships
For partnership cases, where the partners wish to use the partnership bank account to pay the individual liabilities, the Revenue will need to set up separate direct debits for each partner and where appropriate, contact the partners who are able to authorise this arrangement.

Examples where the Support Service may not be suitable
The new service is not intended for those who already have an existing payment arrangement with HMRC, or where HMRC has already contacted the individual or business regarding an overdue payment.

In addition, businesses in the Construction Industry should be cautious in using the above service. Payments of tax or other liabilities after the due dates may result in failing compliance tests and forfeiting the right to receive payments gross. We would recommend written assurance from HMRC before entering into any arrangements.

Service availability
The support line is open Monday-Friday 8.00am to 8.00pm, Saturday and Sunday 8.00am to 4.00pm and can be reached on 0845 302 1435.

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