Bad Ideas and Bad Timing

In case you've forgotten, the temporary reduction in the standard VAT rate ended on the 31st of December last year. So once again everything from brochures to systems will have to be revised to show the new rate - seventeen and a half per cent.

And that isn't the end of the administrative and other costs that face VAT registered businesses this year. Further changes are planned for April 1st which will mean that all existing businesses with a VAT exclusive turnover of £100,000 - and all newly VAT registered businesses - will have to file their VAT returns online and pay their VAT electronically. In many cases, this could involve changes to existing systems or the purchase of new software.

When you consider that National Insurance, income tax, utility bills - and in many cases, rent - will all fall due shortly, or have fallen due already, I can't help but think that somebody, somewhere, isn't thinking very clearly at all.