A Blackpool headquartered small business group has cautiously welcomed a report looking at simplifying VAT payments.
The Office of Tax Simplification published its Value Added Tax: Routes to Simplification report this week which looks at how businesses pay VAT.
Responding to the publication of the report, Mike Cherry, Federation of Small Businesses National Chairman, said: “This fundamental review of our vastly complex VAT system is long overdue.
“Any reduction of the VAT threshold against the current backdrop of unprecedented uncertainty and spiralling costs will have a hugely negative impact on growth within the small business community.
“The OTS is right to address the issue of ‘thresholditis’. It’s equally right to suggest that a smoothing mechanism which doesn’t force any more small firms into the VAT system could encourage more businesses to grow beyond the £85,000 cliff edge.
Small business owners spend a huge number of hours a year complying with their VAT obligations – hours that should be spent running their firms.”