GPT would hit pubs says BDO


The Morning Advertiser reports today

“A top accountancy firm has warned the Government that its proposed changes to tax on gaming machines could take a heavy toll on pub licensees.

The Government is planning to replace the current amusement machine licence duty (AMLD) and VAT on net takings with a gross profits tax (GPT) on gaming machine income, combined with VAT exemption by 2012.

Accountants and business advisers BDO LLP has warned that while a VAT exemption may seem a welcome development, the change will make it more complex for businesses, such as pubs, to comply.

It believes that the time licensees will have to set aside to comply will be a heavy burden to bear. BDO is also concerned over the level the GPT will be set at.

“The new rate of GPT must be within reason and give realistic recognition to the fact that there will be additional costs arising from VAT exemption, alongside extensive additional administrative costs associated with compliance with the new regime,” said BDO VAT principal Martin Dane.

“While the ongoing consultation is around the operation and administration of the new tax, there seems to be no room for any further debate on the tax rate.

“The Government must show that, in setting its motivation goes beyond purely increasing the overall tax take from an already highly taxed industry.”|

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