- The Federation of Small Businesses (FSB) is calling for the government to raise the VAT threshold from £85,000 to £100,000.
- The FSB believes that this would give small businesses more breathing space and encourage them to grow their turnover without having to charge customers an extra 20%.
- The FSB also suggests implementing a smoothing mechanism to help small firms transition over the threshold.
- Currently, many small firms keep their turnover just below the £85,000 threshold, resulting in potential economic activity being lost.
- The FSB argues that VAT compliance is hindering small business growth and a drastic overhaul of the system is needed.
Source: bournerbullock.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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