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Lowering VAT threshold to £26,000

Discussion in 'General Business Forum' started by Hash and Bash, Nov 5, 2017.

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  1. Hash and Bash

    Hash and Bash UKBF Regular Free Member

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    I read an article in Saturday's Telegraph (4/11/2017) regarding an Office of Tax Simplification report which suggests lowering the threshold for registration for VAT from £85,000 to £26,000.
    Article here: https://www.pressreader.com/uk/the-daily-telegraph/20171104/281513636421195

    A good thing - leveling the playing field? or a bad thing - going to drive out small businesses?

    No mention on trying to pursue the multitude of foreign sellers avoiding vat on sites like ebay - small businesses probably easier targets?
     
    Posted: Nov 5, 2017 By: Hash and Bash Member since: Nov 8, 2012
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

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    There are a number of businesses who have adapted their operations in order to remain below the current threshold. People often alter their circumstances to take advantage of the rules government comes up with.
    Government may be thinking they are losing tax money because of people remaining below the limit. Hence looking at changing the limit.
    Bit like how they lose tax by people having limited companies or going self employed rather than be employees of a bigger company.

    Government have been looking into foreign sellers VAT for some time, I believe they changed things a year or so ago? HMRC now have more ability to do things that way than they had. But doesn't solve the issue of tax avoidance in the UK by UK businesses. Which is of course legal.
     
    Posted: Nov 5, 2017 By: Mr D Member since: Feb 12, 2017
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  3. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    It would be interesting to see what assumptions were used and, in particular where the £26k figure came from

    There is actually some logic in lowering, or even dumping the threshold. Yes, it will raise tax revenues but it will actually level th3 playing field and reduce ( not eliminate) fraudulent trading.
     
    Posted: Nov 5, 2017 By: Mark T Jones Member since: Nov 4, 2015
    #3
  4. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,976 2,496
    I agree with your thoughts on lowering the threshold but not of the fact it adds a massive Burdon on start-ups.

    As always the HMRC and Government demands more and more, now days if you are unemployed like my wife and go onto Universal Credit you are expected to have a computer, broadband and contact a load of agency's using it. In HMRC case they could produce a free accounts package for those with small turnovers to help us all become taxmen and girls but that would probably end up as a 2 billion waste if they tried

    Want to park a car they demand either a phone call or text at many car parking spaces, why the need for you to have a mobile phone when you have god forgive cash in your pocket

    Problem is 95% of the population just accept it without a wimper
     
    Posted: Nov 5, 2017 By: Chris Ashdown Member since: Dec 7, 2003
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  5. Mr D

    Mr D UKBF Legend Free Member

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    With the spread of computers, the cost of them and the use of mobile phones it's not unexpected that people will have access. Themselves or through an outside body or through a friend.

    Of those 3 in the last sentence I would expect only a small number not to have access to any of them.
     
    Posted: Nov 5, 2017 By: Mr D Member since: Feb 12, 2017
    #5
  6. Hash and Bash

    Hash and Bash UKBF Regular Free Member

    319 63
    I foresee the need for digital 'carers' in the future so that the elderly (or forgetful) can cope with all the new IT and its use in everyday living.
     
    Posted: Nov 6, 2017 By: Hash and Bash Member since: Nov 8, 2012
    #6
  7. Mr D

    Mr D UKBF Legend Free Member

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    I understand there are such things as 'notebooks' sold to deal with such matters. A lot cheaper than paying for a carer.
     
    Posted: Nov 6, 2017 By: Mr D Member since: Feb 12, 2017
    #7
  8. UKSBD

    UKSBD Not a real duck Staff Member

    10,306 2,044
    Notebooks as in the ones they can use to write down their usernames, passwords, etc. and keep next to their pc's in case they forget them :)
     
    Posted: Nov 6, 2017 By: UKSBD Member since: Dec 30, 2005
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  9. Darren C

    Darren C Guest

    0 0
    Which is probably safer than doing what most people do; ie: having one username and password for everything
     
    Posted: Nov 6, 2017 By: Darren C Member since: Jan 1, 1970
    #9
  10. pelparc

    pelparc UKBF Regular Free Member

    265 34
    Seems like a great way to add to inflation. A lot of small businesses under the threshold sell directly to the public and a lot of this is labour so you are just basically adding 20% to the cost of Mrs Miggins having her grass cut every 2 weeks.

    Hash and Bash makes a very good point, my dad is struggling to use his computer (he was quite fine about 5 years ago) now yet he is expected to use it more and more, this is creating a lot of anxiety for him. He needs to keep his business live as he uses the income for his pension.

    I hope Mr D's post above is just a joke... If not then it just shows the complete lack of and willingness to understand the difficulties others have.
     
    Posted: Nov 6, 2017 By: pelparc Member since: Apr 10, 2017
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

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    Yes basically.
    Unless someone breaks into the house and takes the notebook the average person who cannot remember complex passwords could benefit.
    If someone does break in maybe the issue of passwords is a minor one compared to the main one?
     
    Posted: Nov 6, 2017 By: Mr D Member since: Feb 12, 2017
    #11
  12. Mr D

    Mr D UKBF Legend Free Member

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    Side effect of disability I have is brain fog. I do use different passwords, you want to try recalling dozens of unique passwords while not being able to recall anything? I cannot recall walking the dog half an hour ago. I cannot recall what I said to my wife 10 minutes ago.
    So yes I am aware of issues regarding remembering passwords.



    You could of course record passwords in a computer file, the security implications you can guess at. I do not recommend that.
     
    Posted: Nov 6, 2017 By: Mr D Member since: Feb 12, 2017
    #12
  13. japancool

    japancool UKBF Big Shot Full Member

    3,407 650
    Oh yes, lower the threshold so that even fewer UK companies can compete with those businesses doing business from overseas and who don't charge or falsely declare VAT. Makes perfect sense.
     
    Posted: Nov 6, 2017 By: japancool Member since: Jul 11, 2013
    #13
  14. atmosbob

    atmosbob UKBF Ace Free Member

    4,464 1,054
    There has been no good reason for a high VAT threshold ever since the launch of the cheap Amstrad computer.

    An answer for any small business is something I heard about in France. Agents to handle all the paperwork. I know someone who runs her freelance business in France for less than the cost of an accountant in the UK.

    There has been mention recently of action against foreign sellers.
     
    Posted: Nov 6, 2017 By: atmosbob Member since: Oct 26, 2009
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

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    Has anyone found out what threshold HMRC finds action against foreign sellers to be cost effective?
     
    Posted: Nov 6, 2017 By: Mr D Member since: Feb 12, 2017
    #15
  16. DontAsk

    DontAsk UKBF Ace Free Member

    1,589 240
    I would welcome it, even though I am currently well below the threshold.
     
    Posted: Nov 6, 2017 By: DontAsk Member since: Jan 7, 2015
    #16
  17. atmosbob

    atmosbob UKBF Ace Free Member

    4,464 1,054
    From memory its £15
     
    Posted: Nov 6, 2017 By: atmosbob Member since: Oct 26, 2009
    #17
  18. Mr D

    Mr D UKBF Legend Free Member

    25,434 3,103
    Wow, that's very cost effective for the civil service. Used to be for UK businesses over £1000.
     
    Posted: Nov 6, 2017 By: Mr D Member since: Feb 12, 2017
    #18
  19. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,135 910
  20. Darren C

    Darren C Guest

    0 0
    Posted: Nov 6, 2017 By: Darren C Member since: Jan 1, 1970
    #20
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