Timescales tight for implementing VAT change, say businesses

The Chancellor's move to cut VAT has caused many business leaders to argue that implementing the new rate of 15% on 1 December does not give businesses enough time to make the necessary changes. The Institute of Chartered Accountants in England and Wales (ICAEW) is urging businesses to check their accounting systems and software and ensure they know how to change the VAT rate.

Finance systems supplier CODA found that many of its retail customers think it will cause more problems than it will solve. Top concerns include costly and complex price tag changes, refunds, and risk of IT problems. The British Retail Consortium (BRC) had similar concerns and said the task of updating prices would divert staff away from customers. BRC Director General Stephen Robertson said that "small retailers will find all this particularly difficult to accommodate".

Read more on this story at:
http://www.coda-financials.co.uk/Art?AID=1686

And at:
http://www.brc.org.uk/details04.asp?id=1480

Read reaction from the ICAEW at:
http://www.icaew.com