Reduction in VAT

cavework

So .. with all the news about the recovery of the recession . What as a small business owner would you like to see happen to help?
VAT 20% could be reduced, the living wage idea is great but how as a small business are we supposed to comply?
Our clients are also being squeezed
All the red tape we now have to work with? The restrictions that have to be met by the small business before we can even apply for tenders . The legal requirements that all the companies have to now comply to that have sprung up costing an arm and a leg just to get certified so we can tender?
We end up working for the big boys and the cycle starts again
The large companies that went into liquidation leaving so many small companies bankrupt or fighting for their lives with only the VAT reclaimable after 6 months..
Small businesses are still not being recognised as important yet without them the economy cannot recover.
1st the living wage.. great idea but how are the small businesses supposed to deliver this?
Just a thought

leveller2911

Abolish Business rates and raise the vat threshold...

cavework

what if you run the business from home ?
The VAT is too high ..tax on a tax.
Although you do have a point , we have a shopping precinct that is half occupied , the rest of the town consists of charity shops and now polish shops plus building Societies..
The town council are wondering why our town centre is dead on a Saturday when all the local supermarkets are on the edge of the town and parking costs more than a mortgage .

leveller2911

Unfortunately over the years Joe Public has allowed governments to implement stealth taxes to the extent that now its the norm.

I make Joinery and when I order my glass/double glazed units I also pay an "energy surcharge" which is an enviromental tax on the glass.I then pay vat on the surcharge.......as you say a "tax on tax".

Governments spout how they will cut the basic rate of income tax but fail to tell us they will hit us elsewhere.

cavework

I really do sympathize with you ..another stupid tax that is killing the economy
All it would take is a reduction on VAT , relief on business tax and a reduction on NI contributions by the employer to help the small businesses employ more people.
Stop the tax on tax and forget the living wage unless the government is prepared to support the small businesses and work with us instead of passing the buck
Also the banks could help .. chasing payments and cash flow is killing small companies but in the meantime the banks are just getting richer

paddyrg

No problem with VAT, money must be raised somehow and it's an efficient system for HMRC as we're all tax collectors for them.

I'd chop away at the burdens that make casual short term employment more hassle than its worth. Keeping a part timer still has all the accounting overhead of running a payroll for a dozen!