MSP Calls For HMRC To Offer Payment Holidays

17th March 2020

An Aberdeen MSP has today called on the Chancellor of the Exchequer to offer ‘payment holidays' to businesses affected by the Covid-19 outbreak.

Kevin Stewart MSP has outlined that many businesses already struggling following the Covid-19 outbreak will have VAT and employers’ PAYE deadlines approaching. Failure to pay either bill in full could see businesses fined by HMRC, compounding any hardship they could be suffering.

The SNP MSP has suggested that the Chancellor should consider ‘payment holidays’, similar to what many high street banks have already offered to their customers.

It was also argued that the move may offer some relief to businesses that the public have now been advised to avoid.

With many restaurants, pubs, shops and leisure facilities already having seen large drops in revenue, The Aberdeen Central MSP has called on the Chancellor to ensure no struggling business is fined for late payment of VAT or PAYE bills.

Mr Stewart commented:

"This was a suggestion made by the director of a local restaurant, which I think is perfectly reasonable and would help a lot of small businesses. This should be a common sense move by the Chancellor.

“Following the advice to people to avoid pubs and restaurants, I think there would be uproar if HMRC then tried to fine those same businesses for missing payment deadlines.

“A ‘payment holiday’ would follow the example of several banks who have already offered the same to their loan and mortgage customers. If the private sector can see the financial benefit of cutting people a little bit of slack, hopefully the UK Government will be able to see that too.

“At these unprecedented times, I think we need to be looking at all options to ensure people, communities and businesses are all supported."