There may be a bit of light at the end of the tunnel for small businesses that are hampered by the over-complicated (I think that’s the expression) VAT system.
The government this week issued a call for evidence from individuals and companies “to explore whether the design of the VAT threshold could better incentivise growth”.
This is what the government says it’s all about: “The current design of the VAT registration threshold may be dis-incentivising small businesses from growing their business and improving their productivity.
Express your opinions
“This call for evidence will explore the effect of the current threshold on small businesses, and will then go on to consider different policy options, and ask questions on whether those options could better incentivise growth.”
Follow this link to find out how to express your opinions. The consultation closes on 5 June. Or, alternatively, and probably sensibly, there’s an online survey that should take only seven minutes right here.
Elsewhere, accountants will have to report aggressive tax schemes … by law.
EU law will come into force
The Guardian says: “Accountants, bankers and lawyers will face penalties if they fail to report … avoidance schemes that help companies or individuals move money to offshore havens.
The EU law will come into force before Brexit takes shape (like most things) so will be enforceable in the UK.
The ICAEW quotes Richard Murphy, director of Tax Research UK. He says: “The sad fact is that accountants cannot be relied on to be compliant with the law without measures being specifically targeted at them.
Ethical codes
“Every time an accountant says that the ethical codes of their profession are enough to ensure high standards just remind them of this.”
Back to knowledge-intensive small businesses. They could be on the receiving end of about £20 billion over the next 10 years. That’s the amount the government is considering setting aside to help start-ups that spend between 10-15 per cent of operating costs on innovation and R&D.
But first there’s going to be a consultation…
