Business Advice for all UK firms from starting a business to flotation
VAT cuts may add to small firms tax burden
The one-year VAT cut from 17.5% to 15% is unlikely to help small businesses, with many SMEs facing higher tax burdens.
The removal of 25p in the pound in Alistair Darling's Pre-Budget Report is deigned to stimulate growth and business in the economy.
However, businesses taking advantage of the flat rate VAT scheme face a shortfall after their VAT rates fell by less than the reduction in the headline rate.
Around 184,000 small companies use the flat rate VAT scheme and benefit from rates of between 2-12%, while charging customers the top rate and keeping the difference.
Simon Wolfson, chief executive of Next, commented that that the change will be, "Administratively expensive and do nothing to stimulate demand."
Post Date: November 25th, 2008
The removal of 25p in the pound in Alistair Darling's Pre-Budget Report is deigned to stimulate growth and business in the economy.
However, businesses taking advantage of the flat rate VAT scheme face a shortfall after their VAT rates fell by less than the reduction in the headline rate.
Around 184,000 small companies use the flat rate VAT scheme and benefit from rates of between 2-12%, while charging customers the top rate and keeping the difference.
Simon Wolfson, chief executive of Next, commented that that the change will be, "Administratively expensive and do nothing to stimulate demand."
Post Date: November 25th, 2008
.
.
Accounting Advice | Banking & Finance | Business Continuity | Entrepreneurs | HR/Payroll Advice Insurance Advice | International Trade
Internet Advice I.T. Advice | Legal Advice | Marketing Advice | Office Management | Pensions & Benefits Property/Relocation | Recruitment Advice
Starting a Business | Telecommunications | Training/Education Travel Advice | Utilities Advice | Vehicles
copyright © 1998-2018 Newbusiness.
Homepage | Terms & Conditions | Copyright & Trademarks | Privacy Policy | Sitemail & Forum Policy | Sitemap