Reform UK’s VAT Threshold Plan Faces Doubts Over Long-Term Impact

• Reform UK proposes raising the VAT registration threshold from £90,000 to £150,000, saying it would help sole traders and small businesses and reduce growth disincentives.
• The party says about 750,000 businesses would benefit, at an estimated annual cost of £2.1 billion to the Treasury.
• It also wants quarterly digital tax reporting to be voluntary, rolling back parts of Making Tax Digital.
• Economists say the plan may only shift the VAT “cliff edge” higher rather than solve it, and could still distort business growth decisions.
• The proposal is not current government policy and would need Reform UK to win the next general election.

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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