HMRC: Time to pay: “This is not a bank overdraft or a loan”

In an excellent featured article by the Insolvency Today magazine in October / November 2010 issue the interviewee Nick Lodge, Director of HM Revenue and Customs Debt Management and Banking Directorate has repeated a line put forward by this blog that ‘Time to Pay’ should not be viewed as merely a bank loan or overdraft. However, Mr Lodge states that he is not enamoured by comments by IPs and the media that corporate insolvencies are being kept in check by the ability to get ‘Time to Pay’ easily. He goes on to state that the basis for creating and implementing ‘Time to Pay’ is to collect the taxes more effectively. Surely this is pure semantics with the outcome being the same.
Irrespective of how the HMRC come at this, ‘Time to Pay’ has the effect of delaying the onward rush of corporate insolvencies. It gives the business owner an incorrect impression of their financial position.

 

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