Small businesses given tax return deferral option

Date: 29th December 2008

Small businesses struggling to complete their self-assessment tax returns have been given a lifeline by the government.

As part of HM Revenue and Customs' (HMRC) Business Payment Support Service, small firms are allowed to defer tax payments to a more financially suitable timetable.

Announced in November as part of Chancellor Alistair Darling's pre-budget report, the programme has been drawn up in response to pressures created by the economic crisis.

HMRC said in a statement: "The service is primarily available to companies and self-employed people, but can be used by anyone who is having difficulty meeting their tax liabilities."

The department added that it was urging all businesses and self-employed individuals - including sole traders and partnerships - to consider whether they would be able to fulfil their responsibilities.

The final deadline for self-assessment tax returns is January 31st, with all submissions now having to be made online.