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Business Support

Volume 706: debated on Thursday 18 December 2008


Asked by

To ask Her Majesty's Government in respect of the estimated cost of the Business Payment Support Service which was announced in the Pre-Budget Report, (a) when the service will be available; (b) for how long it will be available; (c) whether interest will be charged on tax payments which are spread; (d) what is the estimated amount of tax payments which will be deferred in each of the years 2008–09 to 2010–11; and (e) what estimates have been made of the amount of tax receipts deferred under the service which will not be recoverable. [HL170]

The Business Payment Support Service started offering help to businesses from the afternoon of 24 November 2008. It is a demand-led service offered to viable businesses in temporary financial difficulties as a result of the current economic conditions. The amount of tax payments spread through this service and the length of time it will be needed will depend on the needs of business. HM Revenue and Customs will not charge additional late payment surcharges on tax payments which are spread, although interest will continue to be payable on those taxes where it applies.