- Chancellor has increased VAT threshold from £85,000 to £90,000
- Aim is to support small businesses and sole traders
- Increasing turnover to reach VAT threshold comes at a cost
- Many businesses operate on the edges of the black economy to avoid VAT
- Example of hairdressing industry shows impact of VAT threshold
- Proposal to reduce VAT threshold to nil to avoid disincentive to growth
Source: claritastax.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.
