RSS feedsWhat tax concessions have been granted to businesses hit by this summer's floods?
HM Revenue & Customs has recognised the severe difficulties faced by those affected by the floods this summer and, indeed, those affected by the more recent outbreak of foot and mouth disease.
At the end of July, chancellor Alistair Darling announced a series of measures for individuals and businesses hit by the floods, in effect bringing forward legislation in next year's finance bill that would allow HMRC to waive interest and surcharges on late payment. Collection of taxes can be deferred or instalment arrangements agreed, debt collection proceedings could be suspended and investigations deferred. Those businesses that have lost financial records will also get a sympathetic hearing.
But now that the waters have subsided, taxpayers should not waste any time getting in touch with HMRC.
The Chartered Institute of Taxation has said that advisers should remind clients of the need to keep contemporaneous records. It says that while the HMRC is offering help at present, clients would find it useful to retain non-financial records to back up their business results in case of any future compliance checks. For instance, clients should keep records of destroyed stock and other assets, cancelled bookings and events, and explanations of reduced takings in areas where customers are affected by adverse trading conditions.
The Revenue has set up two helplines - 0845 300 0157 for flood victims and 0845 366 1207 for foot and mouth.
