Our comments to the VAT consultation papers announced in the Spring Statement

Our comments on the proposed VAT consultation papers announced in the Spring Statement.

VAT threshold
The VAT threshold, currently £85,000, is often a disincentive for small businesses to grow. It is estimated that VAT forms 40% of the financial tax cost and 50% of the compliance cost of small businesses. Moore Stephens will be responding to this Consultation and will also co-ordinate and represent the views of any small business start-ups who have had experience of this issue.

Split payments
The proposal for consultation is that the VAT is automatically and immediately separated from the payment for goods purchased on line, and transmitted to HMRC. This is seen as a major development to counter evasion and avoidance by off-shore suppliers of goods and services through the internet, as well as speed up the collection of tax revenues. Moore Stephens will be responding to this Consultation.

 

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