Credit checking agency ICSM said that HMRC was increasing the requirements to reach agreements on reprieves on tax repayments and also becoming tougher on any defaults in existing arrangements.

The Business Payment Support Service (BPSS), which enables the renegotiation of outstanding tax was an initiative launched in the pre-budget report last November.

According to Begbies Traynor, the BPSS has enabled more than 215,000 companies defer payment of £3.79bn in tax liabilities to the third quarter of 2009.

ICSM warned that this position was "unsustainable". The repercussions could be devastating for printers said ICSM managing director Ian Carrotte. "We believe that this is the thin edge of the wedge," he said.

"Without doubt, levels of insolvency are about to rise dramatically within the SME sector. Printers and their customers are undoubtedly going to be affected."

HMRC was not immediately available for comment.