BUSINESS
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VAT GUIDE • HM Customs and Excise has published two new booklets dealing with VAT matters. The first, called "Motoring Expenses", sets out the details of the simplified system provided for in the 1986 Finance Act for working out the VAT due on road fuel. The new system applies to accounting periods that begin after April 6, 1987. Broadly speaking, under the system, VAT registered businesses can treat as input tax VAT paid on any road fuel, even if they or their employees use it for private motoring.
The second booklet, "Default Surcharge Appeals" sets out the appeals procedure if Customs and Excise says a business is in default or liable to a surcharge. The surcharge applies to those who are persistently late in paying their VAT or sending their returns; it was introduced on October 1 this year.
Copies of both these booklets are available free of charge from local VAT offices.