HC Deb 17 February 1987 vol 110 cc541-2W
Mr. Alton

asked the Chancellor of the Exchequer if he will make a statement on the proposed changes to the value added tax calculations on special schemes for retailers; and what impact this will make on mail order companies.

Mr. Brooke

The consultative paper "VAT: Small Business Review" contained 15 proposals, most of which are recognised as beneficial to small retailers. The proposal to abolish the standard method of reckoning gross takings would impact on those retailers, including mail order companies, which provide self-financed credit facilities.

The Government are considering representations from the mail order industry which argue that this particular proposal is unjustified and would cost businesses in excess of £25 million a year.