Some people feel that the dilemma for HMRC, in the light of falling tax receipts, is deciding if a business (a) is using the scheme as a convenient cashflow source, or (b) is waiting for definite cash inflows to arrive and hence needs time to pay its tax, or (c) HMRC is unwittingly acting as life support for the particular business.
However, Scotland saw a modest rise in payment times beyond agreed terms, from 23.38 days in the second quarter of 2009 to 23.65 days for the same period this year, while late payments in the North West averaged 25.16 days to overtake London as the slowest paying region.
Treasury Exchequer Secretary David Gauke said a complex tax system created “uncertainty and instability”, sending the wrong signal to businesses wanting to invest in Britain.
HM Revenue & Customs (HMRC) has issued a reminder to businesses affected by new online filing requirements for VAT returns.
