Have you used HMRC business payment support?

[writecombination]

Has anyone used the HMRC's business payment support service recently, to defer VAT or PAYE/NI payments?

I used it earlier last year when it was very new but I'm curious to know whether they're getting stricter on their information requirements or have refused anyone.

On the occasions I used them they approved everything almost without question but I got the feeling they were disorganised and just said 'yes' to everything. I've heard that they're getting stricter now.

I'd interested to hear your experiences as I'm planning a blog entry on the subject. If you're willing I could quote you and provide a link to your website (helps with your SEO!)

Thanks!

 

[Richard231]

I rang them recently attempting to defer VAT payments on behalf of a client.

The client was also behind with PAYE and had been for at least 2 years( they weren't not paying, but their monthly payments were less than the monthly due amounts.

The first time I telephoned, I was asked what formal arrangements were in place to repay any outstanding HMRC debt - PAYE, but no agreement.

I was told that any VAT deferment agreement must include the prompt repayment of the PAYE debt. I was asked for exact dates and amounts regarding the due amounts and underpayments which had created the debt.

I went away to find the information, and rang back. The second guy that I spoke to, (as was the old way) agreed to defer the VAT repayment no problem. The only proviso was that I explained the reason why it couldn't be paid immediately (timing difference for retail business in run-up to Xmas so expecting increased sales shortly) and promised to tell my client that he should look to other finance options!

A warning though - I was also told that as this was not the first time (actually the fourth!) that the company had used the BPSS it increased the chances of a VAT visit (though I've not heard from them yet ...)

So I guess that officially it is much strictly, unless you're lucky enough to find that one person who will let you through!!!!

 

[Philip Hoyle]

Our clients have had varying degress of success. It really does seem as if it's dependant on the person you get to speak to. Typical HMRC helpline really - no consistency in how their telephonists deal with callers. One client who has been a habitual bad payer of all taxes for years and is completely disorganised got very attractive deferment plan over several months, didn't stick to it, but managed to get it reviewed over an even longer time period. Another client who had almost perfect records and payment history was refused even though they had a very good reason for temporary delay and only wanted a couple of months to pay.

 

[AerialSolutions]

I have been able to pay on a payment plan for my last 3 quarters VAT. I begged and pleaded for another and they caved in and gave me one more - but this is 'definitely the last'. Hurrah!
I also have been on a payment plan for last years PAYE/NIC which I have just brought up to date. I am continuing this years on a payment plan and should be up to date around April 2010.
Myself and my partners personal tax is also paid as and when we can afford it - but should strictly be to the payment plan set in place last year.

 

[MyAccountantOnline]

I too have several clients who have used it and have very similar reports to Philip - it varies with the person taking the call. Overall though it has been very good.

 

[David Griffiths]

The general reports are that they are quite helpful. However, if you go back for another agreement for the same tax, whether it be successive VAT returns or the next year's corporation tax, the response is that you should have sorted yourself out by now

 

[gillyfleur]

VAT collections office in Liverpool wanted the client to jump through hoops - 12 months accounts, 12 months cash flow forecast, various other items which escape me right now but onerous, time consuming and costly. My comment to the client was "it's cheaper and easier to pay it in full" - and bad attitude from the guy on the phone (which I guess you can't blame him when he hears sob stories all day every day !)

Same day, same client but the PAYE collections office in Dudley, a woman who just said " how much does he owe, how much can he pay each month, OK that's fine, thank you very much" - and very nice to boot. Aren't they all the same entity now ? so shouldn't they have the same policies ? oh no, sorry, I forgot, they're government departments, normal behaviour doesn't happen ! - and this was back in September, the client didn't pay either and no one has turned up at the door yet and he owes £30K VAT and £27K PAYE. No wonder the country has no money !!

 

[AnnaF]

I contacted them end of November for a client who owed £281K VAT for that quarter return (just went over the cash accounting scheme level, so needed to account for all VAT). Because of cashflow the amount would be paid only 2 weeks late, but I phoned anyway to give them heads up. Lady was very rude, didn't want to hear explanation, just said we should expect to get an "inspection" anyday now because of that but gave a month to pay. The client did receive the money they needed and promptly paid within the time limit.

I do think it depends on who answers the phone!

 

[writecombination]

Thank you to everyone for your feedback. I'll be putting together an article on this next week.

 

[writecombination]

Thanks for your input to this thread. I've finally posted an article on this subject: http://www.bizoh.net/2010/01/dont-pay-taxes-legally.html

It's interesting that accountants Wilkins Kennedy think that HMRC are trying to wind the scheme down quietly in a bid to release government funds. I must revisit this subject in the Spring to see where it's going.

 

[*Lexxy*]

the last feedback was a couple of months ago, i just wondered if anyone has had any recent dealings with the support line? especially bearing in mind the comment about 'winding the scheme down'...

thanks in advance

 

[writecombination]

I know someone who used it last month, to spread their corporation tax payment s over 6 months.

They've used the service before and said that this time they were asked more questions and were told 'not to do it again'. They felt that the person at HMRC really had no idea what it's like to be involved in a small business at the moment.

Andrew

 

[elaine@cheapaccounting]

They felt that the person at HMRC really had no idea what it's like to be involved in a small business at the moment.

Andrew

Why would they - they are a civil servant with no idea how the real world functions

 

[*Lexxy*]

oops! i forgot to post back on here...

i rang them a few days after i posted last time, we needed to delay the VAT payment until the end of this month instead of paying at the beginning.

very helpful guy at HMRC at 7.30pm, only asked if we'd used the service before & what for. we paid 2008/09 corporation tax over 10 months, all paid now. he said as we'd only used it once, no problems with delaying the VAT. he did say they were reluctant to let people use this facility on a regular basis as this wasn't what it was there for & that level of need would mean something pretty serious has gone wrong in the business. had to agree with him on this as it probably means you're trading insolvent if you need to defer payment for everything that's regularly due to HMRC? (or is that a bit too simplistic?).

so, we've used it twice now & been very happy each time. let's hope it remains in place as i think they'll be a huge demand for it over the coming months...

 

[*Lexxy*]

i'm not saying anything new here, but an HMRC vat person rang me yesterday, "payment is still outstanding from your last return, when will it be paid?"

i gave her the details of what was agreed & she was fine - but what a complete waste of time?! how on earth can their systems & processes be so ineffectual? there's absolutely no crossover of information whatsoever...:|

another fine example of our money going to waste *sigh*