That stock News

The IES said officials took a tougher line on either seeking businesses postpone more ?1m tax or request further extensions on small amounts of tax payments. Photo: PA

HM Revenue & customs said "application underlying" fell for the scheme, which saw companies postpone ￡ 6 supported tax since its inception in November 2008 as a key initiative to help companies with problems of cash during the recession.

However, the official figures released Friday showed that the percentage of applications are dismissed had spent 2 6pc 5 2pc 2009 this year.

The Daily Telegraph has calculated that, for three months, this rate increased to 7 4pc.

Philip White, Executive Director of the firm financial Syscap, said: "it is clear confirmation that ies makes it more difficult for undertakings to postpone payment of tax and the effect is gradually wind regime."

Hui said he had not been any change to the criteria to be eligible to postpone the VAT, tax on corporations, CAFE or income tax.

But a spokesman said officials took a tougher line on either seeking businesses more than ￡ 1 m tax reporter or request further extensions on small amounts of tax payments.

"The area where you have seen down us more difficult is the repetition of arrangements.Nous ask for more information, and we will not need accept the request,"he said.""

"We will be asking what else did you fact trade your way to your cash flow difficulties."

The figures go a way to allay the fears of accountants that ies were quickly winding on the scheme, with more than 26 000 applications approved during the last three months covering more than 460 m ￡ tax.

However, the amounts are significantly lower than the applications approved at the peak of the month of January 2009.

A second surge in demand was observed in January of this year, with 26,800 applications, largely related to deadlines for payment of VAT and income tax.

Said IES applications extend VAT representing half 371,200 applications carried out since November 2008.En September, these applications have been running 57pc observed level last year.

The amount of tax-deferred basis being reimbursed by the companies dropped 400 m ￡ per month at its peak in March 2009 to 160 million to ￡ in September.

Some ￡ 970 tax m were still pending at the 1st octobre.IES has already said it expects to collect at least 90pc of any tax differs.

The insolvency experts said they remain concerned that a large number of undertakings in financial difficulty may have due to the HMRC will continue to spread the tax arrears.

"If a company asked more than an hour agreement payment or an other extension on their agreed repayment plan, indicating their financial difficulties can be extremely serious," said Frances Coulson of R3, the Organization of business insolvency.

View the original article here