BPSS

The reason for this is due to many businesses and taxpayers contacting HMRC's Business Payment Support Service (BPSS), which was introduced in the Pre Budget Report in November 2008.

Initially the service was set up for businesses, but all taxpayers are free to use it. The system works with HMRC agreeing payment timetables for: Self Assessment, Corporation tax, PAYE, NIC and VAT. The timetables are set at an affordable level for the taxpayer.

If you are facing financial difficulty in these challenging economic times, you too could benefit from the new service by calling the BPSS on 0845 302 1435.

For individuals, if an agreement is reached before 28 February 2009, in respect of a liability due on 31 January 2009, HMRC have agreed that the normal 5% surcharge penalty will not be charged.

Prior to the introduction of the service, taxpayers were required to provide evidence of their inability to meet tax demands, together with proof that all financial resources had been exhausted. The new BPSS only requires a reason for the request and a decision will often be made over the telephone within 10 minutes.

Interest is still charged on any underpayment as normal, until the liability is paid.

The BPSS can be contacted on 0845 302 1435 from 8am to 8pm Monday to Friday and from 8 am to 4pm at weekends.
Further information is available at: http://www.hmrc.gov.uk/pbr2008/business-payment.htm
One condition of any agreement will be that all payments are made on time, so it would make sense to set up a standing order with HMRC.