Garforth, United Kingdom (PressExposure) July 07, 2011 -- Cooper Matthews, a leading provider of business debt advice and solutions for small to medium businesses requiring financial advice, comment on the HMRC's decision to wind up their popular Time To Pay scheme which has helped many businesses through economic difficulty.
Time To Pay (TTP) allowed viable businesses to defer tax payments through the economic downturn. Businesses who are unable to pay on the due date to make payments over a period they can afford. However, over the past 12 months, the number of scheme arrangements agreed by HMRC has dropped 43% from 57,800 to 32,900 in the first quarters of 2010 and 2011. The number of rejected applicants rose by 50% over the same period.
TTP is only granted when a business offers the best payment plan they can afford realistically, and the TTP period is as short as possible. Businesses are often asked to apply for bank loans or make a tax payment with a credit card before becoming eligible for the scheme.
"Payment terms are becoming more stringent, with businesses being offered shorter payment plans, two-thirds of which are now three months or less," a spokesperson for Cooper Matthews commented. "It is worrying that these figures show HMRC is winding it down at a time when businesses are clearly still struggling. We may not technically be in a recession, but a look at the six month trend shows growth is flat-lining. If the scheme does wind down, companies could be looking at more business debt accruing over coming years."
For more information on Cooper Matthews and their business debt advice, visit their website at http://coopermatthews.com/ or telephone 0800 8 40 40 42.
Copper Matthews is a provider of business debt advice and solutions for small to medium businesses experiencing financial difficulties. They are committed to employing a whole market approach in order to identify and deliver the right solution for individual business needs, and, if necessary, are able to assist throughout the liquidation process.