FINANCE
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VAT help
FOR II IOSE operators who sit down each week to "do the books" here is news of a little free help about VAT.
First, chartered accountants Armitage & Norton has published a leaflet designed to "help businessmen understand, and steer a safe course through, the potential minefield of the new VAT enforcement rules introduced by the last Finance Act".
According to the Treasury, three-quarters of quarterly returns and net payments of VAT are late, leaving an average of £1.5 billion of tax continuously outstanding.
Armitage & Norton says that under the new enforcement rules the penalties for late or incorrect VAT returns are harsh.
The company's free leaflet on the subject is available from Peter Horsman at Armitage & Norton, Hazlitt House, 28 Southampton Buildings, Chancery Lane, London WC2A 1AR. Tel: 01831 6851.
Second, HM Customs and Excise has just published an information sheet which deals with the reverse situation. If the HM Customs and Excise is slow in repaying the reclaimable VAT then it is required to pay a supplement.
This VAT repayment supplement system is another part of the 1985 Finance Act and it is due to be introduced on October 1, 1986.
The information sheet explains how the system will work and what conditions have to be met to qualify for a claim. It is available from local VAT offices,