Environment - Floods Hit Businesses Hard

The recent summer downpours which led to severe flooding in many areas across the country have had a disastrous effect on many businesses. According to Chancellor of the Exchequer, Alistair Darling, those worst affected by the floods can expect some tax assistance.

HM Revenue & Customs announced last week that businesses affected by the floods will be given some flexibility when it comes to paying their tax. Measures included in next year's Finance Bill are being brought forward to waive interest and surcharges on tax paid late because of the weather problems. The Revenue will introduce a series of measures for individuals and businesses affected by the recent severe flooding.

A spokesperson for HMRC said: “People affected by the flooding do not have to worry about tax or their tax credit award at this difficult time. Where individuals or businesses are affected by the flooding, they should get in touch with HMRC who will be able to offer practical help. I hope that, by offering this help now and the reassurance that HMRC will back-date their help, we can ease some of the anxiety that is affecting so many people and business."

The HMRC will offer to defer collection of taxes and duties, or agree appropriate instalment arrangements for customers. They also have the power to waive interest, surcharges, and penalties for the period during which collection of tax or duty is deferred.

Where businesses have lost records during the flooding, the HMRC will introduce practical arrangements which may entail suspension of debt collection proceedings and deference of compliance checks and investigations. They will not charge penalties for customers who have missed deadlines as a result of the flooding.

For more information, visit http://www.hmrc.gov.uk

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[ Floods Hit Businesses Hard ]