Following on from David Frost's meeting yesterday with senior Government officials, there has been good news from HMRC. Alistair Darling announced the following measures for businesses affected by the recent flooding.
HMRC will be able to:
- defer collection of taxes and duties, or agreeing installment arrangements where customers are unable to pay as a result of severe hardship
- waive interest, surcharges and penalties for the period during which collection of tax or duty is deferred
- introduce practical arrangements where individuals and businesses have lost records in the flooding
- suspend debt collection proceedings
- defer compliance checks and investigations
- HMRC will not charge penalties where we they satisfied that customers have missed deadlines as a result of the flooding.
HMRC ask that people contact the department if the flooding has made it difficult for them to send in their tax credit renewals on time or if they have a change of circumstances to notify. Similarly customers having difficulty paying their taxes or duties, or sending in tax returns or other information as a result of the flooding should also get in touch as soon as possible.
The Government propose to make this legislation retrospective from 26th July. The Commissioners will exercise their discretionary power not to collect such interest and surcharges in the interim.
Pressure from the Chambers and BCC is clearly having influence so please continue to keep us updated on any issues that need action.