Number of businesses with a VAT debt remains at double pre-Covid level, figures show

THE number of businesses with a VAT debt remains at double pre-Covid level, figures show.

An information request revealed 673,875 firms had arrears in August.

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This compares with 373,595 in December 2019 — before the pandemic — and 934,931 in July 2020 after the Government’s tax-grace period ended.

The figures also show how many firms needed a Time To Pay (TTP) extension — a key indicator of their health.

Taxpayers with a TTP were at 46,932 this August — more than double December 2019’s 19,388.

Emma Roberts, at Touch Financial which sourced the figures, said: “The current situation is deeply concerning.

” “It’s not reached critical levels but it could be a worrying sign of what lurks ahead.

“The numbers have come down from 75 per cent at the height of the pandemic, but it’s surprising because it’s still up 50 per cent from pre-pandemic.

“So not all businesses have recovered.”

Jonathan Eida, of the TaxPayers’ Alliance, said: “Our business taxes are in urgent need of reform.

“They put huge strain on high streets, compounding misery for firms grappling with high costs.”

This post first appeared on thesun.co.uk