§ Mr. Gardinerasked the Chancellor of the Exchequer whether he proposes to take steps to ease the cash flow problems caused for many companies whose value added tax refunds are held up by the Civil Service strike; and whether he will allow them to use their monthly pay-as-you-earn payment to the Inland Revenue to make good the shortfall.
§ Mr. Norman Lamont[pursuant to his reply, 3 July 1987, c. 177]: The Customs and Excise computer system is 20W working again and repayments of value added tax are now being made, together with the addition of repayment supplement—5 per cent. of the tax to be repaid—where appropriate. It will take some days for the backlog to be cleared.
In considering a request for deferral of tax payments, Inland Revenue collectors of tax have general discretion to take account of temporary financial difficulties which a business faces.