Treasury Ministers regularly discuss a wide range of issues with their officials in HMRC and other Departments.
HMRC currently offers ‘time to pay’ arrangements to viable businesses facing temporary financial difficulties. These allow outstanding tax to be spread over a period (usually of months) based on what a business can genuinely afford to pay. Interest applies but the rates are competitive compared to commercial lending.
This approach is designed to ensure otherwise viable businesses are not driven into insolvency by HMRC, both supporting business and in turn maximising tax recovery. Similar “time to pay” arrangements apply to individuals who are not classed as “in business”.
[holding answer 2008]: The Treasury has taken financial advice from Credit Suisse and Deutsche Bank and legal advice from Slaughter and May with regards to implementing the recapitalisation scheme. On matter relating to financial stability, the Treasury also takes advice from the Bank of England and FSA.
(2) what steps he is taking to (a) improve relations with Iceland and (b) help that country in its financial difficulties.
[holding answer 22 October 2008]: The Government are working closely with the Icelandic authorities to resolve issues of mutual interest related to the financial crisis.