VAT is 42% of deferred business tax
17 June, 2009
Reports are showing that due to cash problems, approximately 141,000 businesses have deferred their tax payments, totalling an amount of £2.5bn.
Value added tax makes up 42% of business taxes deferred under agreements struck with the Business Payment Support Service, the BPSS having been set up by the Chancellor to assist businesses from going under during the recession.
The deferred VAT makes up 1.5% of the total predicted VAT take of £64bn for 2009-10.
Businesses with cash problems can also request a deferral of PAYE and NIC payments and these are normally granted with extensions of approximately 3 to 6 months’ grace.