PENALTIES FOR LATE PAYMENT OF VALUE ADDED TAX

That this House recognises the problems facing small and medium-sized businesses and their employees in the current economic downturn; is concerned at the difficulties in obtaining loans and refinancing from banks; calls on the Government to recognise that the imposition of penalties for late payment of value added tax by HM Revenue and Customs (HMRC) can cause businesses to fail; and further calls on the Government to issue guidelines to HMRC to assess the impact of such penalty payments on the business and, where necessary, agree a phased payment plan to prevent bankruptcy and loss of jobs.