TaxPersonal TaxThe Big Question – FDs prefer VAT grouping to stay intact for simplicity’s sake.

The Big Question - FDs prefer VAT grouping to stay intact for simplicity's sake.

Nearly 40% of finance directors want the VAT grouping system to remain as it is.

This week’s Big Question survey, carried out by Accountancy Age and Reed Accountancy Personnel, found that 37% of the 200 FDs questioned opposed any reform of the VAT grouping system by Customs & Excise. Grouping allows a UK business group to have a single VAT registration.

Malcolm Davis, FD of Lovell Construction, said: ‘Changes to the system will increase administration costs. I don’t understand the logic in changing a tried and tested system.’

Chris Denby, of British Arab Commercial Bank, added: ‘Reorganising our corporate structures for new VAT rules would probably be considerably more expensive, and might be at odds with our business requirements.’

Philip Walbank, KLM treasurer, also stressed the need for clarity. ‘It is difficult to sympathise with banks paying a bit more tax, bearing in mind their profit levels,’ he said.

Only 16% of FDs favoured a VAT shake-up. ‘VAT is becoming overly complex and expensive to administer. Purchase tax was dropped for this reason,’ said Sean Myles, of Gwent Training and Enterprise Council.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

17h Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter