Finance For Businesses

[robert551069]

On the TV programme "Question time" last night someone suggested that financial help for businesses could be easily made by allowing them to make VAT payments one month in arrears. That seems like a good idea to me.

[factor-fiction]

I don't know what the current timing regime is but I think that this, whilst it would help business, would in effect mean that at the time of introduction the government (us) would lose a month's worth of VAT- and I think that would be a huge sum to forgo.

[buildersmate]

They do at least a month in arrears. I used to pay mine 3 months in arrears. I don't think any businesses have to pay 'on account'

It's yet another example of a well-meaning person on QT not properly understanding how the system works. It seems to happen a lot.

[The Builder]

Agreed. You can have a monthly or three monthly account; both payable in arrears.
They even give you an extra seven days if you pay online.

[factor-fiction]

I didn't see the programme, buildersmate, but assumed that the suggestion was to give an extra month, since it clearly can't be the case that payments currently have to be made immediately. But it was more likely to have been, as you say, a suggestion from someone who doesn't know the current rules

[buildersmate]

An extra month probably was the true question, F30 - in which case it is OP that doesn't understand.

I've been very grateful for the cashflow afforded by HMRC over this.