In case it somehow slipped under the radar allow me to draw your attention to our recent story about potential back-assessments on print work that had been deemed zero-rated for VAT.

This is potentially a huge, huge, HUGE deal for the industry. I imagine some print management companies in particular will be feeling a bit twitchy as they await the outcome of discussions between HMRC and a collective of interested parties comprised of the BPIF, IPA and DMA.

As it happens I'm just reading the administrator's report for an agency that was hit by a £5m back-assessment claim from HMRC for this very thing. That's right, five million of our British pounds. It seems the directors had little choice but to call in the administrators in the face of this enormous liability looming over them.

According to the report, the IPA put up a £30,000 contribution towards legal fees to assist the company's case against HMRC "in order to seek clarification regarding the treatment of inserts and mail-shots". Meanwhile, the administrator states: "I am currently in discussions with HMRC regarding its claim, whilst also pursuing the review and appeal process that the company initiated prior to my appointment. Due to the sensitive nature of these discussions I am unable to provide further commentary within this report..."

In conversations unrelated to the company above, sources in the know tell me that some firms have been a bit "flexible" about using the zero rated aspect to cover entire campaigns, which may not tally with the spirit of the law. Hence the VAT man getting busy in this space as he attempts to fill the giant hole in the nation's coffers.

One print chum from the DM world tells me that they always, always get a ruling from the VAT office for each particular pack where the rating could be in question, so they have absolute clarity and no nasty surprises. And this is someone who's actually doing the printing. For those in the management game things could get pretty hairy if HMRC starts clawing back millions where it doesn't feel there was adequate justification for a zero rating.

It could bring a whole new meaning to retrospective rebate.