BUSINESS owners were not the only people who believed the prestigious Royal Ascot At York event would provide a massive trading boom.

Letters sent out to local pubs and cafs before the event have revealed that the taxman was also expecting a nice little boost to the exchequer's revenues.

The letters from HM Revenue & Customs, posted in the week prior to Ascot, warned businesses not to forget their VAT returns amidst the imminent "busy period".

HM Revenue & Customs officer Andrew Lee said: "The prospect of increased turnover may result in a particularly busy period for you and your business.

"In our experience, a sudden change in trading pattern can create problems and certain tasks may be forgotten or left until later."

Mr Lee also made it clear that HM Revenue & Customs would not be fooled by any errant York businesses attempting to hoard their vast Ascot wealth.

"With this in mind, may we stress the importance of submitting your VAT return and payment by the due date and ensuring that your declaration reflects any increase in trade."

But the letters were greeted with disbelief and amusement by Jim Hardie, landlord of the Blue Bell pub, in Fossgate, who is still recovering from the disastrous drop in trade suffered by many businesses in York during the big race meeting.

"I've still got vats of beer left that I'd ordered in for Ascot," he said. "God knows what it cost to send out all those letters.

"I'm not worried though, because business was so bad for everyone."

Aziz Said, owner of the Yorvik Caf, in Rougier Street, said the letter had prompted him to order in extra stock. "I thought to myself - they've got experience, they know what they're talking about, prepare yourself," he said. "But from the Tuesday, I knew it was a disaster."

He said he believed everyone had been badly affected by Ascot - and he was sure the taxman realised now that he had got it wrong.

A spokesperson from HM Revenue & Customs told the Evening Press: "The letter was a customer service initiative.

"We were reminding people of our inquiry lines and of the advice available. It was intended to help."

Updated: 08:37 Wednesday, June 29, 2005