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01 December 2008
Body wants 'light' approach to genuine errors
The Forum of Private Business (FPB) has urged HMRC to ease the administrative burdens placed on small businesses by the drop in the standard rate of VAT from 17.5% to 15%.
The FPB has suggested the following changes be put in place:
- Businesses given 30 days to issue invoices during December.
- The Revenue to publish detailed explanations of the changes to the flat-rate VAT scheme, to reassure businesses that the cut is being passed on.
- A 'light touch' applied to businesses that make genuine errors in their VAT returns over the period of the cut from 1 December 2008 to 1 January 2010.
- The time limit for issuing credit notes increased from 14 to 45 days, to provide time to adjust to the new rates.
- HMRC increase the profile of the new helpline available to struggling businesses.
- Businesses should be able to easily access detailed information from the taxman's website on how the VAT changes will affect them, and the guidance on the cash accounting scheme should be amended to reflect changes.
The FPB's VAT expert, Andrew Needham, announced that the Revenue had 'said that it would consider and make any changes within its power to assist small firms at this difficult time. I am confident that we have convinced [the taxman] to make some small changes, which will provide some relief to our members'.
