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SMEs warned on timing of HMRC scheme

HM Revenue & Customs has warned that its multimillion pound scheme to help small and medium-sized enterprises survive the recession may take time to implement, according to Beever and Struthers. Although SMEs may not see immediate improvements, the Time to Pay Arrangement Scheme is designed to help with the management of cashflow by enabling businesses to spread tax liabilities such as corporation tax and VAT more effectively. A high-level meeting held at Beever and Struthers' head office in Manchester between HMRC and accountants and business advisers, was designed to strengthen ties and improve understanding between businesses and HMRC. Claire Kennedy, tax partner, urged that those SMEs that have made arrangements should keep to their schedule of payments otherwise any late or missed payments could consequentially mean withdrawal from the scheme. Beever and Struthers has advised small businesses to liaise more proactively with HMRC and accountants to identify cashflow issues if they want to ride out the recession. Kennedy said: 'The clear message is that expert advice is available to help SMEs through these troubled times.'
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