Vat killing me!

[skyhuck]

if they reduced the threshold to something like 20k then it would remove this two tier business structure we seem to have developed. How absurd is it to constrain a company to remain competitive in the market place. Instead they should be allowed to flourish & hopefully employ more staff & pay better wages etc etc.

 

:congrats:

[Mark Bolam]

Trying to sail under £20k would be a struggle though Pete.

[Pete Mctree]

just employ the PM's accountants & I recon you could manage

[richy_B]

if they reduced the threshold to something like 20k then it would remove this two tier business structure we seem to have developed. How absurd is it to constrain a company to remain competitive in the market place. Instead they should be allowed to flourish & hopefully employ more staff & pay better wages etc etc.

 

I agreed but would push it the other way and put the VAT threshold at £300k in line with the higher rate corporation tax limit.

 

Obviously industry dependent but by time you are turning over 300k you are more likely to be an established, multi staff business and can bear the brunt if VAT better. Yes, it would lose the VAT office quite a bit but it would also save them loads in no having to deal with/chase/check lots of small businesses.

[Burgess]

if they reduced the threshold to something like 20k then it would remove this two tier business structure we seem to have developed. How absurd is it to constrain a company to remain competitive in the market place. Instead they should be allowed to flourish & hopefully employ more staff & pay better wages etc etc.

 

 

Well you may as well just make it that all business have to charge VAT. Would be a good way of seeing who is legit or not for the customer too.

 

But then would probably drive more cash work.

[Johny Walker]

While this is true, the revenue will take an interest in you if you hover just below the threshold for a while.

 

why so? do explain !!

[Ian C]

if they reduced the threshold to something like 20k then it would remove this two tier business structure we seem to have developed. How absurd is it to constrain a company to remain competitive in the market place. Instead they should be allowed to flourish & hopefully employ more staff & pay better wages etc etc.

 

I have been saying that for a while Pete, reduce threshold to O so all businesses need to register but reduce vat rate to 10% hmrc would actually be better off, small business would all be on an equal footing and domestic don't have a choice but only have to swallow 10%

 

This country insists on make success so hard through bull **** legislation.

Edited April 16, 2016 by Ian C

[Daythe trees]

Here here Ian! I know I shouldn't make this political but VAT is one of the reasons I'm voting out of the EU! I know it's foolish to think that if we leave the EU that it will disappear but I would then at least be comforted that the nation had more control over what it is used for and the headache of charging it as a small business doing domestic work would sit more easily.

Political rant over.

Edited April 16, 2016 by Daythe trees
Pete McTree when you stand for election I will be voting for you sir!

[simonm]

To be fair you still have control over the situation as you can just stay below the threshold. If you really feel VAT is going to lose a lot of work and you only just hitting the threshold then should be straightforward. Just keep a close eye on your revenue.

 

We hit a dab short of 90 grand turnover, so its too late! It seems ridiculous capping your earnings to stay under the threshold when the reason you set up is to line your own pockets not someone else's! I am new to this and maybe in a while it might not be as bad as it seems.

[richy_B]

You can deregister for VAT. If you were hitting 90k but are finding a downturn due to the new price hike you can't be far off the threshold.

 

The predicament will seem worse when you are just over the limit. As your turnover increases the VAT impact decreases.

Edited April 16, 2016 by richy_B