Troubled airline Flybe says it has agreed a payment plan with HMRC for “less than £10 million”, denying speculation that it has been given a tax deferral of up to £100 million.
The operator said that arrangements would span a “matter of months” and that outstanding tax and duties would be paid within the window.
Flybe claims that the tax deferral is no more than a “standard Time to Pay arrangement with HMRC that any business in financial difficulties may use”.
Flybe boss Mark Anderson revealed earlier this week that the carrier is in talks with the government concerning a loan, but that any financial support that the state may offer would not be in the form of a bailout.
It has largely been believed in the previous few days that the government’s support would come in the form of a deferral on Flybe’s outstanding Air Passenger Duty payments, which now appears to be the case.
Rival airline bosses have urged the government to publicise details of the Flybe rescue agreement, amid concerns that it may be in breach of state aid rules. The government insists that this is not the case.
