The big question

Accountancy Age has teamed up with recruitment consultants Reed Accountancy Personnel to introduce a new service to the profession.

Each week we will pose a question on the burning issue of the moment to 200 leading finance directors to bring you a snap-shot of the profession’s views on the subjects that will most affect your business. The results of the survey will be published in next week’s issue.

The Big Question: During the past few weeks Customs & Excise has come in for a torrent of criticism over its decision to limit to three years the general period that businesses can claim back overpaid VAT, while maintaining the right to go back six years to investigate potential cases of unpaid VAT.

Despite the initial hostile response, industry has had several weeks to digest the implications of this decision. The question that UK plc must now ask is: Is this an unreasonable move by Customs to stem the tide of legitimate claims by businesses that can be traced back to the start of the VAT regime in 1973, or is it simply a prudent move to minimise the damage to the country’s finances?