HC Deb 03 November 1975 vol 899 c4W
Mr. Skeet

asked the Chancellor of the Exchequer in view of the high cost to the State of maintaining workers on unemployment benefit, whether he will ensure that firms are given extensions of time to pay outstanding tax liabilities, in cases where he is satisfied that not to do so would result in redundancies.

Mr. Robert Sheldon

In general firms must be expected to budget to meet their tax liabilities promptly in the same way as their ordinary commercial liabilities. If they have genuine difficulty about doing so on a particular occasion, they should consult their local collector of taxes; but there can be no question of any general deferment of tax payments. PA YE tax deducted from employees' wages and salaries must in any case be paid over to the Inland Revenue promptly because this is employees' tax money which employers collect on behalf of the Government.

Mr. Skeet

asked the Chancellor of the Exchequer what current instructions apply in cases where it is represented to the Inland Revenue that insistence on the payment of outstanding revenue without delay will result in the closure of a firm with consequent loss of employment.

Mr. Robert Sheldon

The Inland Revenue naturally takes account of representations about the consequences of the possible closure of the firm when deciding how to set about the recovery of tax due from an employer. But there can be no question of any general departure from the principle that the Inland Revenue's function is to get in tax due as speedily as possible, if need be by recourse to bankruptcy or company liquidation proceedings.