Fylde coast business call for VAT red tape to be cut

Mike Cherry of the FSB

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.”

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