Her Majesty’s Revenues and Customs is currently trying to install a new software system. As a result it has led to massive delays in processing tax returns etc.

Now whilst this may be great news for those that are ultimately due to pay tax over as a result, many of those that are due tax refunds are struggling to cope.

One local business I know is currently owed £20,000 by the Revenue. Small businesses in the middle of a recession need that kind of money. Another Bury business I know is also owed thousands – tax paid via the revenues Construction Industry scheme for sub contracted staff – not repaid byclients – refundable from IR.

The Government must ensure that HM Revenue and Customs  get a grip of the situation and sorts this mess out soon, before the inevitable happens and businesses go to the wall as a result. That would be criminal negligence so far as I am concerned with the impact that small business failures have on local communities and the families involved.

If there is no immediate prospect of getting through the backlog and making these vital tax refunds then they should make imterim payments to cover (say) 80% of the expected repayment. That’s assuming they can still write cheques!