EU to lower VAT for local firms

[scotspine1]

The EU are proposing lowering VAT to as little as 5% for local firms which includes gardening, building etc. Treework would no doubt be included.

 

http://http://news.bbc.co.uk/1/hi/world/europe/7492834.stm

[Tom D]

that links not working for me.

[Yorkshireman]

or me

 

but this does

 

http://news.bbc.co.uk/1/hi/world/europe/7492834.stm

 

interesting I wonder how they will off set the VAT at higher rates incurred by those companys involved in the scheme, if it is adopted

[Steve Bullman]

undoubtedly someone somewhere will be out of pocket without realizing.

[Tom D]

This sounds like a terrible idea. you pay vat at 17.5 and can only charge only 5%.

[skyhuck]

This sounds like a terrible idea. you pay vat at 17.5 and can only charge only 5%.

 

No, if your paying at 17.5% you can claim back at 17.5%. The 5% is already on work done on listed buildings.

[Tom D]

I see, fair enough, in that case bring it on.

[benedmonds]

The flat rate scheme you pay 9% but charge 17.5..

[skyhuck]

The flat rate scheme you pay 9% but charge 17.5..

 

Yes, but you cannot claim back on stuff under £2,000, not that bigger saving, if any, but less hassle.