FSB issues red reminder to taxman.

The Federation of Small Businesses (FSB) has called for Her Majesty’s Revenue & Customs (HMRC) to issue much-needed cheques on time to around 130,000 small businesses. The call follows news that HMRC has admitted it could take until December to issue the cheques. The payments of £150 are incentives for filing annual PAYE returns online.

The scheme, introduced in 2004, was meant to encourage small businesses to file PAYE online and will become compulsory in 2010.

Bill Knox, FSB National Taxation Chairman, said:

“It is a very different scenario when the HMRC are owed money from small businesses – there is little room for a small business owner to tell the taxman, ‘actually, it will take about four months to pay you because we’ve just been too busy.

“What we are saying is don’t wave a carrot to small businesses if it’s going to be left in the air for months. The financial incentive may not be a substantial amount to larger businesses but is vital to smaller ones, and waiting over a quarter of a year for it is too long a time.

“The Government quite rightly disapproves of late payment of both tax demands and monies between businesses. HMRC, as an arm of the Government, should set an example and pay within thirty days.”

ENDS

Notes to Editors:

1. Small businesses employ 58% of the private sector workforce, contribute over 50% of UK GDP and make up more than 99% of all UK businesses.

2. The FSB is Britain’s biggest business organisation with over 205,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

For interviews with FSB Chief Spokesman Stephen Alambritis or other senior FSB personnel please contact the FSB Press Office.

FSB Press Office
Matthew Knowles: 020 7592 8113 / 07917 628991

Simon Briault: 020 7592 8128 / 07917 628998

Belinda Webb: 020 7592 8121 / 07825 125 695

For regional FSB contacts please go to www.fsb.org.uk/regions