The UK government's Low Value Purchase System is a waste of time

Original Article ↗ Hacker News Discussion ↗

Low Value Purchase System & “No Business” Reporting

  • Core complaint: suppliers must log in monthly and explicitly declare “no business” even when they’ve had zero sales, with MFA and a clunky gov.uk flow.
  • Some see this as needless bureaucracy that contradicts the scheme’s goal of being “low friction” for small businesses.
  • Others argue zero-activity confirmation is standard in tax/compliance regimes and serves as a positive acknowledgement (prevents “I forgot” excuses and lets the authority know you actually saw the request).
  • Debate over account suspension vs. ongoing nil returns:
    • Pro‑suspension: allow suppliers to pause reporting until they trade again.
    • Critics: if you still want to sell to government, you end up toggling status constantly; may not reduce friction.

Contracts, Legal Obligations, and Risk

  • One camp: this requirement is clearly spelled out in the supplier contract; businesses should read what they sign and walk away if it’s too onerous.
  • Counterpoint: understanding a term doesn’t preclude criticising it as wasteful.
  • Concern raised about broader contract terms, e.g., extensive IP infringement indemnities that many small suppliers may not fully grasp.

Broader UK Bureaucracy & Tax Context

  • Commenters link the issue to wider UK administrative burdens:
    • TV licensing harassment cycles, “nothing to declare” confirmations elsewhere.
    • Complaints about Making Tax Digital, VAT, and multiple overlapping systems.
  • Others note that for most PAYE employees the UK tax system is largely invisible and streamlined.

Comparisons to Other Jurisdictions

  • Parallels drawn to US state sales tax regimes where zero‑sales filings are still mandatory and deregistration is difficult.
  • Anecdotes of dysfunctional systems (e.g., Illinois tolls and tax forms) and long-running disputes.
  • TV licence experiences in South Africa and Ireland: small recurring charges, hard to exit, but made very easy to pay, so many tolerate the inefficiency.

Procurement, Scale, and Regulatory Capture

  • Broader procurement processes described as hostile to small vendors:
    • High bidding costs, word-limited essays, and diversity/community criteria.
    • Requirements and reporting overhead that only large vendors can absorb, reinforcing regulatory capture.
  • Some note civil servants recognise the waste but feel constrained by legislation and risk-avoidance culture.