Tax Relief For SMEs Impacted By Covid-19

covid-19 hmrc late payment sme Mar 19, 2020

HM Revenue & Customs has been told by the government to adopt a lenient approach with SMEs impacted by coronavirus that are unable to pay PAYE, VAT and other taxes.

It has set up a hotline for directors to call and ask for a “Time to Pay” arrangement if they're struggling because of the effects of the pandemic.

The number to call is 0800 015 9559.

HMRC will consider proposals for deferred payments or for spreading payments over time, say 12 months or even longer, and can waive late payment penalties and interest, but you must call them as soon as possible.

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Late Payments putting even more pressure on SMEs in 2020

The amount owed to UK SMEs in late payments had allegedly risen to £50bn in early January according to research by digital banking platform Tide as reported by CityAM.

It has calculated that the average UK SME is chasing five outstanding invoices at once, wasting an hour and a half every day.

Data from Pay UK, which runs the Bacs Direct Credit and Direct Debit payment services, later in the month revealed that late payments had reached a four-year high last year at £23bn.

Tide’s new £50bn total was considerably higher than Pay UK’s total of £23bn owed to SMEs and I cannot reconcile the two figures.  The Tide research was conducted by Atomik Research among 1,002 SME decision makers from the UK and, it appears, judging by a footnote to the Tide report, that its £50bn figure may have been estimated on the basis of a total of 5.9 million SMEs, as calculated by The Department for Business .

However, the situation puts immense pressure on...

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Update – sacked Small Business Commissioner speaks out

The now-ex Small Business Commissioner, Paul Uppal, has accused the Government of thwarting attempts to help SMEs tackle the late payment scourge.

Mr Uppal has reportedly blamed Whitehall for pushing him out of a role which, he says, is under-resourced and ignored by government.

He said that his office was met with “radio silence” from civil servants and ministers over his approach to the job and that his budget was too small to tackle the “huge task” of getting big companies to pay small businesses on time.

He also revealed a little more detail about the reason for his sacking, which was “a disagreement over an alleged conflict of interest related to an unpaid, interim advisory role in another government-backed small business scheme”.

The Times, is the only national broadsheet to cover the story, although it has been picked up by the online publication smallbusiness.co.uk.

It seems that The Times is becoming the champion of SMEs, carrying...

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Small Business Commissioner Paul Uppal sacked – is this down to his success in holding large companies to account?

In a worrying development the Government has sacked Paul Uppal, the Small Business Commissioner, over what it called a “conflict of interest”.

Even more worryingly, the only news outlet to report on the development was The Times, on October 12.

It reports that “the business department felt his involvement in establishing a bank redress scheme was a conflict of interest”.

So far, apart from the report in The Times, there has been a deafening silence on this development.

Mr Uppal’s role as a mediator of payment disputes between small and large companies was established in 2016.

His dismissal came just a few days after the Government had announced that Mr Uppal’s role was to be expanded to having a seat on the Compliance Board of the Prompt Payment Code, which it was intending also to strengthen.

The Government said: “Fiona Dickie, the Deputy Pubs Code Adjudicator, will provide oversight in the Small Business Commissioner role until early...

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