skip to main content

VAT Threshold Increase Could Create Thousands of North East Jobs

9th Dec 2010

With the rise in VAT looming large at the start of next year, a report by the Federation of Small Businesses (FSB) suggests that around 35,000 new jobs could be created if the VAT threshold for small businesses were increased by £20,000.

The report shows that if the VAT threshold was increased to £90,000 then businesses would stand to save £162 million per year as they would avoid complying with costly VAT red tape.  This is on top of the £700 million saving in general VAT payments incurred by increasing the gap.

Simon Hanson from the FSB said that the rise in VAT is a big issue for small businesses in the North East. "The smaller the business, the higher the cost of VAT compliance; this is why the FSB is calling for the Government to increase the threshold at which a business must register for VAT."  The extra money generated would create up to 35,000 jobs on an average wage, the FSB said.

At Muckle LLP, we understand the many challenges in the world of modern business. We’ll work closely with you and spend time to understand you and your business in order to find solutions to the legal issues that you face.  We act for all types of clients, from start-up businesses to large organizations.  No matter the size of your business, we’ve got the expertise you need.

If require commercial legal advice, call 0191 211 7777 or alternatively email us at [email protected].

(main article sourced from bdaily website, 9 December 2010)

Share this story...