Businesses still deferring tax payments

The Business Payment Support Service designed to provide firms facing short-term financial problems with more time to pay their tax bills is still attracting applications.

HM Revenue and Customs (HMRC) revealed that, as of 20 December 2009, some 249,000 businesses had come to agreements under the scheme

This service allows businesses struggling with cashflow to negotiate a timetable for settling PAYE, corporation and income tax bills, was aanounced by the Chancellor in his 2008 pre-Budget Report.

The total amount of deferred tax has now reached £4.37 billion of which £3.33 billion has been repaid.

The majority of rescheduled payment agreements (60 per cent) are for three months or less.