BPSS is available to help viable businesses to meet their tax obligations when they are experiencing temporary financial difficulties. It provides a streamlined service for businesses to arrange additional time to pay their HMRC tax bill. Most decisions are claimed to be made “within 10 minutes”.
This support has been very successful and has already helped over 200,000 businesses employing more than 1.4 million people. To 14 March 2010 over 305,000 agreements have been reached with businesses to spread tax payments of more than £5.2 billion. HMRC now say that they will continue to offer time to pay as a permanent part of its support for all viable businesses having difficulty in meeting their tax obligations.
BPSS is primarily aimed at self-employed people and companies but HMRC will consider applications from anyone who is having temporary difficulties in meeting their tax obligations.
A word of caution is needed as it has been reported that a second claim for a time to pay arrangement is likely to meet detailed investigation by HMRC before it is agreed.