Chartered Accountants call for Revenue compensation
| Date Added: Wed August 15 2007 |
Leading accountancy body claims that SMEs should receive compensation for VAT registration delays.
New measures and checks to counter VAT fraud, have meant that it is taking at least three months to get a VAT number, potentially plunging small businesses into difficulties.
In order to charge customers VAT and reclaim it, companies must first register with HMRC. Whilst businesses can start trading before the registration is complete, accountants state that without a VAT number, companies are unable to invoice their customers.
Frank Haskew, Head of the Tax Faculty at the ICAEW, said that HMRC has tried to implement the new system ~without adequate resources~ and that, as a result, the delays are ~clobbering 99pc of honest businesses~.
An HMRC spokesman explained: ~We have a duty to protect the Exchequer, and the checks we make are essential. We have an approved plan that will minimise delays for legitimate businesses, which is now being implemented.~ |
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