Today's Telegraph has a report saying that "the Government has told HMRC to show lenience towards companies ravaged by Covid-induced debt, to avoid a wave of insolvencies this summer."
In addition, the Financial Times noted that Kwasi Kwarteng, the Business Secretary, has written to bosses this week promising that HMRC will take “a cautious approach to enforcement of debt owed to Government that will have accrued” during the pandemic. We shall see...
This decision comes hard on the heels of various business groups warning of potential disaster as the government's emergency coronavirus support measures end next month.
For many firms, financial challenges could be intolerable if HMRC go after overdue taxes. This week marked the deadline to join a VAT deferral payment scheme, which allows businesses to pay the tax in up to eight monthly instalments.
If you have any concerns about paying your company's tax due to issues caused by the pandemic, please get in touch. Remember that M&S is a bona fide tax specialist and we will be able to give you sound advice.
Vivian Linstrom, M&S Accountancy & Taxation