March 18th, 2018

Lowering the VAT threshold

 

This could be your chance to make a difference.

The Government is currently consulting on what it should do with the VAT registration limit – currently £85,000.

The current system means that going over the VAT threshold can be bad news for some businesses.

For example, if a wedding photographer has sales of £84,000 they’ll pay no VAT but increase sales by £2,000 to £86,000 they’d pay as much as £14,000 in VAT.

This ‘cliff edge’ means that businesses will take steps to keep turnover below £85,000 – like closing down for a month. I’m not sure I agree with Paul Morton of the Office of Tax Simplification when he says “We hear that cruise ships are full of people staying below the VAT threshold”.

Having a tax system that encourages people not to work isn’t a great idea so it’s likely we’ll see some change.  Options include:

As part of the consultation the Government wants your input. You can complete the anonymous survey here

Share this post

Filed under

Accountants Chartered Accountants Newsletter Photographers VAT

by
Director

John manages a wide portfolio of owner managed businesses and oversees the smooth operation of the firm’s payroll department.

After obtaining his degree in mathematics from the University of Liverpool, John joined Jonathan Ford & Co in 2004 and qualified as a chartered accountant four years later. John likes to keep abreast of developments in tax and accounting and is responsible for the mentoring of junior staff.

Outside of work, John enjoys keeping fit and is a Liverpool FC season ticket holder.

Give a Goat

Give us a referral and we will donate a goat to a family in Africa

Find out more

Our Newsletter

Enter your email address to subscribe to our mailing list.
  • This field is for validation purposes and should be left unchanged.