New threat to small business as Time to Pay scheme cut back

More and more Time to Pay applications by small businesses and SMEs are being rejected by HRMC, it has been revealed in the latest statistics.

Almost 3,500 requests were rejected in the first quarter of 2011, showing a significant increase on the 2,360 from the whole of 2010.

Time to Pay enables small businesses to pay tax payments over several stages throughout a financial year, rather than having to find all the cash and pay it at once in one lump sum. Three smaller payments are undoubtedly easier for small businesses to be able to finance, whilst allowing for cash to be spent across other areas of a business, to help it grow.

Repeat applications for the TTP scheme are now being regularly rejected, possibly due to the fact that money for tax is being spent elsewhere.

It is thought that the tightening up of the scheme has come at the wrong time, when small businesses are already having a tough time as economic conditions throughout Europe and the world become more volatile. Cash flow will be inhibited yet further and there could even be more Company Voluntary Arrangements due to this.

Invoice finance – the solution?

If you’re being financially hit by the scaling down of the Time to Pay scheme, perhaps you could do with an accessible cash flow boost from a business finance company that is completely independent of the banks.

Why not talk to Skipton Business Finance today, to see what flexible invoice finance solutions we can offer, to help tide you over and stop your business from unduly suffering during the turbulent economic conditions.