VAT change may cause accounting nightmare

Measures such a 2.5 per cent reduction in VAT outlined in the Chancellor's pre-budget report this week could cause confusion and extra administration for high street practitioners who have until Monday December 1 to implement necessary changes.

The temporary VAT reform, designed to persuade shoppers spend, could cause chaos for outlets who will have to change prices and alter IT systems at short notice, then change them all again in 12 months.

According to Marc Bennett of AEL Partners, a firm specialising in VAT matters for optical practitioners, the impending changes could create an 'administrative nightmare'. He pointed out that patients will now be in a position to request a reduction to their current standing order/direct debit in order to reflect the lower VAT rate on purchases of contact lenses, creating an additional problem for practitioners in terms of orchestrating this change.