SMEs could be deferring £7.7bn
Article Date: Apr 02 2009
Save your business much needed cash
Cash-strapped small businesses are losing out on the chance to defer a potential £7.7 billion of tax payments, claims the Association of Accounting Technicians (AAT).
According to the organisation, companies are missing out on cash due to late filing of accounts, failure to claim Business Rate Relief and ignorance of the ‘Time to Pay’ scheme – which allows companies unable to pay their tax bill to spread payments.
Tom Kelman, director of corporate resources at the AAT, says: ‘It’s not surprising that business owners are struggling when Britain has one of the most complicated tax systems in the world. Over 500 pages of new tax law are created, each year, and at 10,000 pages and 5.8kg, the standard tax handbook – Tolley’s – has almost doubled since 2001. Only India has a more complex tax code.’
The ‘Time to Pay’ scheme was introduced in November, but so far only 60,000 businesses have arranged to spread their tax burden with HMRC.
Kelman adds: ‘There’s so much support and guidance available to businesses, but it needs to be more clearly signposted and – in the case of the tax deferral ‘Time to Pay’ scheme – made easier to access. It’s in all our interests for companies to make the best use of resources available so they can be in a position to grow once recovery begins.’
In January, the Anderson review found that three-quarters of SMEs find it difficult to find information about regulations that apply to their business, but as many as half do not seek advice.
