Proposed 10K turnover level for vat registration

[sinewove]

Read in yesterdays Mail that the "office for tax simplication"had proposed the 10k level for vat registration.Sounds like bad news for start up contractors doing domestic work,but is it better for creating a level playing field?
Regards,S

 

[Octopus]

Hum ............... Yesterday's Money Box on the BBC was outlining changes and clarifications to IR35 ........ and one would be increasing the level of NI for Self Employed people......

As for VAT - that would simply drive the cash economy. More like its a typing error on the part of the Daily Mail and it should read £100K

 

[SJD]

Changing the VAT threshold has been raised, apparently the UK level is quite high compared to the rest of Europe, an FT report I read a few days ago suggested it could be set a lot lower. But £10k is (I think) far lower than is being considered, and probably scaremongering by the Daily Mail.

 

[snowhead]

There's no suggestion of dropping it to £10K.
It mentions the EU lower threshold is Euro 10k.

It's proposals that may or may not be taken up by UKGov.

OTS publishes its first review of VAT - GOV.UK - https://www.gov.uk/government/news/ots-publishes-its-first-review-of-vat

 

[Octopus]

and as the EU get a "cut" of all VAT, they would be happy with the threshold being £1

 

[PEG]

So,i can expect an appropriate VAT receipt from the paper-boy,then...

If we are going to worry about everything listed in the Mail...we are going to need a LOT more weed...and that's from a man who is tee-total

 

[Deleted member 105166]

20 years ago when the VAT return was a 100% paper process, many HMRC (HM C&E back then) clerks were needed to administer the system. The registration threshold was then £49k. Fast forward to 2017, the process is 100% digital, with minimal clerical input very much by exception only, whilst the threshold has raised to £85k. IMHO the threshold should be reduced to £26k - this would give a level playing field for bonafide traders, i.e. anyone with sales over £500 per week would register. Currently many legitimate small businesses that strive for 100% compliance with everything the government throw at us, endure an unfair disadvantage when operating in the same market as others that don't work to the same ethic. If the government had the resolve to embrace this, £billions would be yielded and ultimately everyone would benefit - 20% tax could become 17%, 40% could become 35%, etc.