HMRC changes BPSS system for businesses

31 March 2010

Written by Michael Aglony

Business mortgage holders who have large tax debts might be interested in new regulations from HM Revenue & Customs (HMRC).

The Business Payment Support Service (BPSS) allows firms to reschedule certain tax payments if they are having difficulty in paying at that time.

But those with debts in excess of £1 million must support requests with an Independent Business Review, under new guidelines coming into force tomorrow (April 1st).

Nick Lodge from HMRC said: "We remain committed to supporting compliant, viable businesses through periods of temporary difficulty by providing time to pay arrangements under the BPSS."

The reviews include information such as management systems, current trading and financial positions and banking arrangements.

Arrangements for tax debts include National Insurance, VAT and PAYE taxes.

Mr Lodge explained the new regulations will guarantee that taxpayers get better value for money and the system is fair.

BPSS was introduced in November 2008 to help companies struggling with the economic conditions.

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