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 Businesses could face lower VAT threshold

The Office for Tax Simplification has proposed that businesses charge VAT when their turnover hits around £20,000, rather than the current £85,000, claiming many small businesses resist expansion beyond this point and that the threshold, one of the highest of any country in the world, is expensive. Responding to the idea, Edwin Morgan, of the Institute of Directors, said: “We"re hoping this month"s Budget will simplify or cut taxes rather than raising them. Many of our members started out as entrepreneurs, and we know small businesses need all the help they can get.” The OTS also suggested that HMRC remove the VAT exemption from dozens of goods. The FSB’s Mike Cherry added: “Our small business owners should be spending their time and money growing their firms, not navigating an array of different VAT schemes and an inconsistent list of exemptions as long as your arm.”

Source:   Daily Mail (04/11/2017

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