BPSS ‘will not protect all firms from insolvency’

Posted 30/10/2009

Companies looking to the government’s Business Payments Support Service (BPSS) scheme as a way to avoid insolvency have received a reminder that it will not provide assistance to every business.

New HM Revenue & Customs (HMRC) figures obtained by Accountancy Age reveal that the government has so far accepted 220,000 requests from companies looking to defer their tax payments during the recession.

However, HMRC has also rejected the requests of 6,119 companies since the scheme began on November 24th 2008.

The body also reminded companies that it takes a “very dim view” of those firms which make arrangements for deferral of tax debts and then fail to comply.

It said: “In such cases they should expect HMRC to take firm action to recover the debt.”

Earlier this week, accountancy group Tenon predicted that a large number of UK businesses will face insolvency over the coming years as they struggle to cope after current amnesties on taxation end.