Clause 201 - Non-established taxable persons

Part of Finance Bill – in a Public Bill Committee am 10:45 am ar 21 Mehefin 2012.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Nigel Mills Nigel Mills Ceidwadwyr, Amber Valley 10:45, 21 Mehefin 2012

I am sorry to delay the Minister, but I have some quick comments. This is one of those European Court cases that has produced a rather strange verdict. The impact means that very small businesses that operate in the UK with tiny amounts of turnover will now in theory be meant to register for VAT, when they probably would not have to register in their home countries, and would not register here if they were based here. That creates a perverse situation where a window cleaner from Ireland who pops over to clean the windows of a few friends in Northern Ireland and gets paid for that will in theory be committing an offence by not registering for VAT.

I would like the Minister to set out whether there is any realistic way that that can be enforced. How will we be able to catch all those people who are engaging in tiny amounts of trade? Is there really any gain from the measure? Will the cost not wholly outweigh any VAT that might be collected? This is just another example of  the EU forcing us to impose on small businesses ridiculous regulations that cannot possibly be complied with, rather than focus on the large businesses that ought to be the scope.