- UK Chancellor Rachel Reeves faces a £50 billion fiscal gap at the Autumn Budget.
- Labour has pledged not to increase income tax, National Insurance, or VAT rates on working people.
- There is speculation about changing the VAT registration threshold.
- The UK has the highest VAT registration threshold in Europe.
- A lower threshold could bring more businesses into the VAT net, raising revenue.
- A higher threshold could stimulate growth by removing businesses from the VAT net.
- Conflicting media reports suggest either raising the threshold to £100,000 or lowering it to £30,000.
- The Telegraph suggests a pro-growth increase to £100,000.
- The Daily Mail suggests a cut to £30,000 to raise extra tax revenue.
- Uncertainty remains about the government’s actual plans for small businesses.
Source: vatcalc.com
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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