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

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Accountants Chartered Accountants Newsletter Photographers VAT

by
Managing Director

Jonathan trained as a chartered accountant with Price Waterhouse (now PWC) in Liverpool before becoming a small business services manager for Grant Thornton in Warrington. He also spent three years as the financial controller for Brookside and Hollyoaks (not that he ever mentions it!).

Jonathan is recognised as a specialist in the entertainment industry and is often called upon to provide training courses and seminars for media professionals. He's also a bit of a technology geek and has been recognised with the accountancy industry as one of the most progressive accountants in the UK.
Outside of work Jonathan is very proud to be the Treasurer of the Tim Parry Johnathan Ball Foundation for Peace and to be on the Council of the Liverpool Institute of Performing Arts (LIPA)

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