|
Trade News Archive 2010 January February March
Subscribe to our newsletter Go to The Wholesaler UK Directory
4th March 2010
Small business stealth tax
The Federation of Small Businesses (FSB) has revealed that a number of small firms are paying a higher flat rate VAT than should be expected.
The organisation reveals that 48 per cent of small companies have seen a rise in the level of flat rate VAT since the return of the tax to pre-recession levels.
It has been suggested that the government review the issue and make amendments in the upcoming Budget.
John Wright, national chairman of the FSB, said: "After VAT was put back to 17.5 per cent in January this year, nearly half of the flat rate schemes have seen the VAT level rise above the pre-decrease level.
"The majority of businesses will see their rates rise, which is unacceptable at a time when cash-flow is limited."
The FSB reveals that newsagents and clothing stores have seen rates rise by 4.5 per cent.
Flat rate VAT is charged to the firms with a turnover of less than £150,000.
© 2010
Comment on this news story
Trade News Archive 2009 January February March April May June July August September October November December
Trade News Archive 2008 December November October September August July June May April March February January
|
