UK independent financier Syscap has seen an upsurge in demand for tax funding, a sign that businesses are still struggling to fund their tax bills.
The lessor, which specialises in IT finance and tailored financial solutions for the professions sector, had 156 requests for tax funding in the April-July period this year – a 132 percent increase from the 67 requests received in the same period one year ago.
According to Syscap, the growing reluctance of HM Revenue & Customs (HMRC) to approve deferred payment of tax under its ‘Time to pay’ taxation scheme has contributed to the surge in funding requests.
Syscap CEO Philip White said: “This dramatic rise in demand for funding is stark evidence of how difficult businesses are finding it to finance their tax bills.
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“The feedback we have been getting from customers is that HMRC has been gradually tightening the screws on its ‘Time to pay’ scheme. They are telling us that HMRC is becoming much more reluctant to approve payment plans.”
According to the leasing company, customers have reported that HMRC has made significant changes to the structure of the scheme, including offering payment deferral plans of between three and six months – when last year 12 month plans were widely available.
It said that at least 24 approaches have been from businesses seeking funding of £250,000 or more for tax payments, as opposed to just seven between April 1 and July 31 last year.
White said: “For some months we have been calling on the Government to clarify its future plans for the ‘Time to pay’ scheme. Businesses deserve to know whether the scheme is going to continue to support them or not, especially in the face of evidence which suggests that HMRC is now shifting the goalposts.”
Antonio Fabrizio
