Over the past week, we’ve set out a range of policy ideas to help entrepreneurs get through the coming months. You can find most here. But as important as it is to put forward plans big enough to meet the economic challenge, it’s important to ensure that the tools we’re using to deliver them are fit for purpose.
One of the ways the government is trying to help businesses with their cashflow is by giving them leeway on their tax payments. Businesses can ring up HMRC on a special Coronavirus hotline and agree to spread the bill over 12 months (with interest).
On Twitter, Clifford Chance’s Dan Neidle points out a potential hitch. “Micro and small businesses may not have access to advisers… [while] HMRC won't have capacity to deal with millions of time to pay requests.”
He suggests an alternative. The “Government should put "time to pay" arrangements on a statutory footing, at least for the short term, with automatic deferral for small and micro businesses.”
We agree. Anything that reduces uncertainty for small businesses right now should be welcomed.