Flood-hit pubs' tax break hope
Flood-hit pubs may be eligible for tax breaks, the Government has announced.
HM Revenue & Customs (HMRC) has said it will:
- Defer collection of taxes and duties, or agree installment arrangements where customers are unable to pay as a result of severe hardship
- Waive interest, surcharges and penalties for the period during which collection of tax or duty is deferred
Where individuals or businesses are affected by the flooding, I would ask them to get in touch with HMRC who will be able to offer practical helpHMRC minister, Jane Kennedy.
- Introduce practical arrangements where individuals and businesses have lost records in the flooding
- Suspend debt collection proceedings
- Defer compliance checks and investigations
HMRC said it would not charge penalties where it is satisfied that customers have missed deadlines as a result of the flooding.
A statement from HMRC said: "The Government will bring forward legislation in next year's Finance Bill, which will allow the Commissioners of HM Revenue & Customs to waive interest and surcharges on tax paid late due to the floods.
"The Government proposes to make this legislation retrospective from 26 July. The Commissioners will exercise their discretionary power not to collect such interest and surcharges in the interim."
HMRC minister Jane Kennedy said: "I want to ensure that 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, I would ask them to 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 move follows lobbying by the British Hospitality Association and others.
BHA chief executive Bob Cotton said: "I'm delighted that they have responded so quickly."
He said he would discuss the details of the offer with ministers to ensure the system works effectively.
A helpline has been set up by HMRC offering advice on tax issues for flood-hit businesses - call 0845 3000 157.
