- The Federation of Small Businesses (FSB) is calling for the government to raise the turnover threshold for VAT from £85,000 to £100,000.
- The FSB believes this would give small businesses breathing space and encourage growth without having to charge customers an extra 20% overnight.
- The FSB also suggests implementing a smoothing mechanism to ease the transition for small firms and self-employed individuals just 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 stifles small business growth and calls for a modern makeover of the system.
Source: grantandco.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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