FSB Calls for VAT Threshold Increase to £100,000 to Support Small Businesses

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.

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.