Breaking the law is not the answer to cashflow woes
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1 READ WITH interest the article "VAT black hole" (CM 16 September). 1 am amazed that Vera Budge can claim to refuse to pay UK VAT, due to what amounts to cashflow problems within her business.
Does this mean that the company that I work for can also refuse to pay UK VAT, because we may also suffer cashflow problems? The answer to this question would be a sound 'not I am also very surprised to see that the debt that John Budge Haulage is complaining of is only £42,420 for last year. This is surely a small amount compared to the turnover of such a well-established company.
While I sympathise fully with any business which experiences cashflow problems, the solution is not to refuse to pay UK VAT. I am amazed that a company can go on the record in Commercial Motor and say that it will do so.
1 would suggest that Mr and Mrs Budge spend a little more time carrying out cashflow forecasts.
Edward Plant Chief accountant OE Services
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