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Mega

The Ticking £3 Billion Time Bomb

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Maybe, time to pay on PAYE is effectively government subsidy to keep people in jobs.

What's better somone in a job or them paying someone benefits. There must be a big tipping point where if they push too many firms under by calling time on tax arrears they actually severely damage their own financial position through benefits payments.

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How many firms will have been deferring payments over the last 6 months in the hope of a quick recovery?

If it doesn't arrive and you keep on putting off repayments of VAT, Corp tax and PAYE, at what point do the directors come to the conclusion that they have built up so much debt that they are unlikely to be able to ever pay it back. It would be more sensible to just stop trading and liquidate the company?

Companies are not supposed to keep trading while insolvent. If they do I believe that the directors are either commiting an offence or become liable. How is this going to play out when their accountants do their next set of accounts?

If a tipping point is reached it will have a massive impact on employment and the wider economy as many small companies cease to trade and leave a trail of bad debts behind them. The deleayed payments will become another form of taxpayer bailout that will never be repaid.

Edited by Hip to be bear

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If your employer has withheld PAYE and NI payments under the scheme, then goes bust, wont you as the employee be liable for the tax?

No, but allow me to issue a public information post:

1) HMRC will write to you trying to get the money if your employer goes bust and hasn't paid your PAYE & NIC (scandalously they're often knowingly trying it on - they'll claim incompetence/ignorance, of course)

2)It is vitally important you keep pay slips and P60s. This is evidence you've paid and copies of which will prove to HMRC that you've paid tax and your NIC is up to date. The fact your employer didn't pass it on is HMRC's problem for its poor collection procedures.

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2)It is vitally important you keep pay slips and P60s.

Including keeping pay slips after you've had the P60 for the financial year they cover? I keep the pay slips until I get my P60, and then just keep the P60 as it records all the PAYE and NI paid in the financial year in a single document.

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Guest anorthosite
Everything seems to be pointing towards the autumn for the U.K/U.S.

:ph34r:

We said that last year around here as well :o

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Including keeping pay slips after you've had the P60 for the financial year they cover? I keep the pay slips until I get my P60, and then just keep the P60 as it records all the PAYE and NI paid in the financial year in a single document.

I keep everything tax-related for seven years. You just never know.

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