FPB calls for VAT leniency

Posted on 1 December 2008

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Small businesses should be given help from HM Revenue & Customs as they adapt to the 2.5 per cent VAT reduction which came into effect today (Monday December 1st), it has been claimed.

The Forum of Private Business (FPB) has called for leniency where the administration of tax returns is concerned, requesting that firms which make genuine errors during December escape serious sanctions.

It has also requested that small businesses are given 30 days as opposed to the legally required 14 to issue invoices, in a bid to relieve some of the administrative burden placed upon them.

FPB VAT expert Andrew Needham said he was hopeful that HM Revenue & Customs would respond to the representations made.

He added: "HM Revenue & Customs was open to the suggestions and said that it would consider and make any changes within its power to assist small firms at this difficult time."

The VAT reduction was announced in chancellor Alistair Darling's pre-budget report last Monday (December 24th).

Category: Tax & Legislation News

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