There are lots of problems with the UK tax system. Perhaps the worst is the way it can stop businesses from growing. Top income tax marginal rates of 70 per cent and above are bad enough, but there’s one problem even more serious than that – the VAT threshold.
Small businesses can ignore VAT. But once their turnover hits £85,000 they have to charge VAT at 20 per cent on everything they sell.
Source: MSN
