Following on from Graeme’s post about the Time to Pay arrangements.
Are you in the Construction Industry? Have you got Gross Payment status? If you have, you’ll know how valuable that status is, and you’ll be well aware that losing that status could lead to a loss of up to 20% of cash inflow. And that would be terminal for many businesses.
In these difficult times of slowing customer payments and restricted funding from banks, it’s easy to allow PAYE and Corporation Tax payments to take a back seat to other creditors. But if you do you could be putting your Gross Payment status at risk.
Under its recently published “Time to Pay” scheme, the Inland Revenue has clarified that businesses entering into an arrangement under it will not lose their gross payment status.
But it’s vital the business agrees the Time to Pay arrangement before payment is due, not after. And whilst there is still a risk that the “computer” will send out automatic notices of revocation, the Inland Revenue has also confirmed these will be cancelled on immediate appeal.
So the message is – use the scheme or lose the status.
The information in this article was correct at the date it was first published.
However it is of a generic nature and cannot constitute advice. Specific advice should be sought before any action taken.
If you would like to discuss how this applies to you, we would be delighted to talk to you. Please make contact with the author on the details shown below.
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