Money in taxpayers pocket please....

Over the last couple of years we have seen an increase in HMRC refusing monthly returns for new traders. In the main they say they will allow it after 12 months trading, but how is this useful to repayment traders starting out in business? In amongst the increase in 'Time to Pay' agreements, you would have thought they might just have decided to allow monthly returns to improve cashflow of businesses, therefore not putting themn under financial strain to need a Time to Pay, but clearly this doesn't make election winning headlines!

A recent case we have had here involved a TOGC (transfer of a going concern) of a repayment business. The vendor is on monthly returns, but HMRC have refused the purchaser the same cash flow benefit, claiming again that they need 12 months trading first before being allowed the same benefits! If the business model on which you thought you were buying was based on cashflow - then buyer beware when HMRC are involved!

As an aside, our very own M.D. John Crawford is to appear for one night only (well afternoon) on BBC Radio Solent (also broadcast on Surrey & Sussex) on Sunday January 10th between 3.00p.m and 4.00p.m for a VAT discussion.