Small businesses, however defined, should be allowed greater 'time to pay' to HMRC VAT and Payroll Taxes. Businesses like Football Clubs, owing millions in back taxes to HMRC are seen to be entering administration, negotiating a few pence in the pound deals and then carrying on as before. Small businesses need either extended time to pay in the current climate or access to bank finance at reasonable rates and not the 14% the banks are quoting.
Why does this idea matter?
Important because small businesses (under £200k turnover) are suffering from a credit squeeze that will see many go under, simply because customers are taking longer to pay, while creditors, including HMRC, are chasing their money. Expansion plans must be put on hold for lack of capital.
The Government must deliver on promises of availabilty of capital through the banks or make finance available by some other means.