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Diversification | 11
any historic tax that is owed, the UK is sitting Once approved, all payments are made via the debt and additionally worrying over buying
on a tax time bomb which is about to explode. Tax Team who will continue to monitor the food and clothing for herself and her young
The businesses that are in real danger are arrangement with regular 3 monthly reviews child.
those that may have historic tax debts or those to accommodate changing circumstances. The After speaking to one of tax team, Miss X
that have not availed themselves to the BPSS plan might also incorporate arrangements was assisted with a Time to Pay arrangement
Scheme. These businesses collectively employ which might have been made with other cred- with HMRC and simultaneously assisted with
several million UK workers and could face the itors in constructing a viable solution. her unsecured credit giving her a much more
possibility of ‘company liquidation’ or ‘bank- There are no processing fees or upfront affordable weekly payment.
ruptcy’. costs for the client to pay and the initial advice Mr Y - a self-employed gardener was open
So what is the solution for a business that from the tax team is given free of charge and to fluctuations in his income with the chang-
has a historic tax bill or a current tax bill and with no obligation. Once a payment plan has ing of the seasons. Prior to speaking to the tax
hasn’t contacted the BPSS Scheme before the been agreed the first instalment is taken to team he was trying to cope paying out over
tax has become due? cover fees and the set up cost. To offset these £1,200 per month to an outstanding self
That is why the ICE Group launched its Tax costs in many cases the client will not be assessment liability. Owing to the fact that his
Assistance Service. This service assists Sole charged further interest or penalties from income fluctuated, Mr Y was having difficulty
Traders, Partnerships, Limited Companies and HMRC. increasing his income to pay his liability off
Trusts, and can help with current or historic This arrangement remains between HMRC immediately.
Self Assessment, VAT, PAYE/NI Contributions, and the business. There is no need for credit One of the tax team was able to consolidate
Corporation Tax and Capital Gains Tax. scoring or any records left with Experian or all his outstanding finance and give him a
It works with the tax team speaking with Equifax. Examples of a couple of clients that more affordable monthly payment; this pay-
business owners over the telephone. have been helped are as follows; ment was then offered to HMRC and was
Businesses receive a free, no obligation consul- Miss X was struggling to maintain her pay- accepted under a Time to Pay arrangement.
tation with a top level adviser who will take ment towards her outstanding self assessment Time to Pay Plans can usually agreed within
full consideration of other creditor commit- tax liability, after the business that she ran a matter of days, and can mean the difference
ments and put forward recommendations from home closed. She was trying to cope between saving a business of the owner/part-
which are ultimately acceptable to HMRC. paying out over £200 per week towards the ner/director and the livelihood of their staff.
www.mortgageintroducer.com March 2008 Commercial finance Introducer
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