Hammond To Reduce VAT Threshold In Budget?
Discussion
MEC said:
Wouldn't the "going rate" increase to £15.00 though as all similar businesses would also need to register for VAT and would be in the same position?
Unlikely, as the "Big players" (that's 1 or 2 large corporations who rule the market) are already VAT reg'ed - They rely on exorbitantly priced mass paintball sales instead of entry prices, as well as hosting 3, 4, 5x the numbers on a day - This business model doesnt work for us small players. But to answer your question more directly - Who knows, it might, it might not.
For those pointing out such frivolities as profit, I'm fully aware of those, thank you. My businesses each t/o well in excess of the threshold and live on tight(ish) margins.
For those moaning about competitors, that's the nub of your problem. You might for example lack the scale and/or USPs to properly compete in your respective market. That's your issue, not VAT. If you exist profitably only due to favourable tax positions, you have to question their viability.
For those moaning about competitors, that's the nub of your problem. You might for example lack the scale and/or USPs to properly compete in your respective market. That's your issue, not VAT. If you exist profitably only due to favourable tax positions, you have to question their viability.
janesmith1950 said:
That's your issue, not VAT. If you exist profitably only due to favourable tax positions, you have to question their viability.
Not really. The business might be ticking along fine, paying just enough to allow the business owner and a couple of employees to happily provide the services they do and they're not too fussed about trying to beat last year's profits to please shareholders.Whilst I have bigger goals and VAT shouldn't be an issue, I know plenty of small businesses who happily operate like this providing an income for themselves and creating a few jobs.
janesmith1950 said:
For those pointing out such frivolities as profit, I'm fully aware of those, thank you. My businesses each t/o well in excess of the threshold and live on tight(ish) margins.
For those moaning about competitors, that's the nub of your problem. You might for example lack the scale and/or USPs to properly compete in your respective market. That's your issue, not VAT. If you exist profitably only due to favourable tax positions, you have to question their viability.
I am sure you don't mean to, but that comes across as very arrogant - it is perfectly acceptable to run a business that fits an individual's needs - and it is good for society to have a mix of business sizes and owners...For those moaning about competitors, that's the nub of your problem. You might for example lack the scale and/or USPs to properly compete in your respective market. That's your issue, not VAT. If you exist profitably only due to favourable tax positions, you have to question their viability.
Some people make choices as to how they wish to run their business - and this will remove choice and variety which is a shame
Flat-6 said:
No - in this situation Joe is not avoiding tax, he (or she) is simply paying less - VAT is completely irrelevant to Joe - He simply pays the lower total figure - as we all would.
Also - there is ABSOLUTELY nothing wrong with tax avoidance.
Not getting into the tax avoidance debate but I agree. Also - there is ABSOLUTELY nothing wrong with tax avoidance.
However if Joe Bloggs did choose the non vat registered over the other /was even given the choice then they have the ability for paying less tax= tax avoidance.
Welshbeef said:
Flat-6 said:
No - in this situation Joe is not avoiding tax, he (or she) is simply paying less - VAT is completely irrelevant to Joe - He simply pays the lower total figure - as we all would.
Also - there is ABSOLUTELY nothing wrong with tax avoidance.
Not getting into the tax avoidance debate but I agree. Also - there is ABSOLUTELY nothing wrong with tax avoidance.
However if Joe Bloggs did choose the non vat registered over the other /was even given the choice then they have the ability for paying less tax= tax avoidance.
surveyor said:
That's not not getting into the debate. And you are wrong. that's the joe blogs choosing the lower cost. If they are a consumer at that stage they not even know that the difference is vat.
Really?Well my experience must be unique.
Electrician stated without prompting not VAT registered ditto plumber ditto fencer.
Welshbeef said:
surveyor said:
That's not not getting into the debate. And you are wrong. that's the joe blogs choosing the lower cost. If they are a consumer at that stage they not even know that the difference is vat.
Really?Well my experience must be unique.
Electrician stated without prompting not VAT registered ditto plumber ditto fencer.
singlecoil said:
As a kitchen maker I usually let it slip that I trade just under the VAT limit. Customers seem to like that, it helps explain why my stuff is such remarkably good value
Like wise,As a small one man band body repairer when customers say they will think about my quote and maybe get a couple more I mention I am not VAT registered that usually gets me the job.
surveyor said:
That's not not getting into the debate. And you are wrong. that's the joe blogs choosing the lower cost. If they are a consumer at that stage they not even know that the difference is vat.
Appears you are not correct as other PH who are not VAT registered have verified. I supose it would be too much to hope f
k wit Mc chancellor face will clamp down on bogus self employment being used by big companies to avoid paying Tax ,paye etc , IMHO If you drive a van or taxi for one company or get your work handed to you and aren't allowed to seek work yourself you should be on the books cards in ... as you aren't self employed ...
k wit Mc chancellor face will clamp down on bogus self employment being used by big companies to avoid paying Tax ,paye etc , IMHO If you drive a van or taxi for one company or get your work handed to you and aren't allowed to seek work yourself you should be on the books cards in ... as you aren't self employed ...Welshbeef said:
surveyor said:
That's not not getting into the debate. And you are wrong. that's the joe blogs choosing the lower cost. If they are a consumer at that stage they not even know that the difference is vat.
Appears you are not correct as other PH who are not VAT registered have verified. The system over here works on the basis of a much lower sales tax (VAT if you like) and you can’t claim it back. You can only get out of paying it if what you’re buying is intended for resale.
So, if I buy an item of stock to resell, I don’t pay sales tax. If I buy a printer for my office, I do pay sales tax.
I was pissed off when I first had to get my head around the concept, however it’s actually a very fair system as no matter how big or small, each business pays the same (as does the man on the street).
That approach would then also ultimately be able to lead to a reduced VAT rate.
So, if I buy an item of stock to resell, I don’t pay sales tax. If I buy a printer for my office, I do pay sales tax.
I was pissed off when I first had to get my head around the concept, however it’s actually a very fair system as no matter how big or small, each business pays the same (as does the man on the street).
That approach would then also ultimately be able to lead to a reduced VAT rate.
Vincecj said:
I'm of the opinion that the VAT threshold should be RAISED to £250,000. I believe this would boost small business because a number of people are not working to capacity because they don't want to get involved in VAT.
Does anyone else agree?
Good point. We should be encouraging small businesses. Low hanging fruit, though.Does anyone else agree?
Vincecj said:
I'm of the opinion that the VAT threshold should be RAISED to £250,000. I believe this would boost small business because a number of people are not working to capacity because they don't want to get involved in VAT.
Does anyone else agree?
And if that small business deals B2B rather than B2C it can be a financial advantage to be registered for VAT - their client doesn't care as they simply reclaim the VAT, and the business concerned can reclaim VAT on their purchases...Does anyone else agree?
In the past I've always thought that the UK VAT threshold had crept upwards so much over the years that it was now excessive.
HOWEVER, due to the complications of the introduction of a two tier VAT system centered on who has to "go digital" for VAT and who can stay on the current system, reducing the threshold would make it compulsory for far more businesses to have to switch to the new Making Tax Digital VAT system coming in from April 2019.
HOWEVER, due to the complications of the introduction of a two tier VAT system centered on who has to "go digital" for VAT and who can stay on the current system, reducing the threshold would make it compulsory for far more businesses to have to switch to the new Making Tax Digital VAT system coming in from April 2019.
Vincecj said:
I'm of the opinion that the VAT threshold should be RAISED to £250,000. I believe this would boost small business because a number of people are not working to capacity because they don't want to get involved in VAT.
Does anyone else agree?
Alternatively, have no threshold at all (like in some countries).Does anyone else agree?
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