Brussels threatens small businesses in the UK

[AtW]

Brussels VAT bombshell threatens small businesses as UK follows EU rules in Brexit transition

Thousands of small businesses will face more tax and red tape if European Union rules on VAT are allowed to continue after Brexit, MPs have warned.

New EU plans would see small- and medium-sized enterprises (SMEs) forced to register for VAT when their turnover hits €85,000, or £76,700 - below the current British threshold of £85,000.

“VAT is the hardest, most time-consuming tax for small businesses to administer, typically taking more than a working week a year. Dragging more small firms into this bureaucratic regime would take hard-working entrepreneurs away from running and growing their businesses," said Mike Cherry, national chairman of the Federation of Small Businesses.


Brussels VAT bombshell threatens small businesses as UK follows EU rules in Brexit transition

Easily solved after brexit by getting sterling to below of 0.9 euros...

[original PM]

Erm yeah pretty sure any businesses worth its salt will be well aware of the limits and well prepared to deal with it.

[chopper]

VAT is the hardest, most time-consuming tax for small businesses to administer, typically taking more than a working week a year.

Did something change about VAT? I've never found VAT particularly difficult.
a) Charge VAT to customers. Deduct VAT you sent to suppliers. Send balance to government.
or
b) Charge VAT to customers. Send a fixed percentage of turnover (including VAT) to government.

Why does that take more than a working week per year?

For most businesses, it is pretty trivial to do the VAT yourself but still need an accountant to do the corporation tax. So no idea where the idea has come from that it is hard or time consuming?

[Whorty]

Did something change about VAT? I've never found VAT particularly difficult.
a) Charge VAT to customers. Deduct VAT you sent to suppliers. Send balance to government.
or
b) Charge VAT to customers. Send a fixed percentage of turnover (including VAT) to government.

Why does that take more than a working week per year?

For most businesses, it is pretty trivial to do the VAT yourself but still need an accountant to do the corporation tax. So no idea where the idea has come from that it is hard or time consuming?

You have 1, maybe as many as 4, invoices per month plus maybe a purchase each year (if you have a new laptop). Many (real) small businesses have thousands to process. Not all goods are 20%, some goods they buy and/or sell are zero rated (for example).

[AtW]

One problem in the UK is that many VAT registered businesses don’t give you proper VAT receipt/invoice by default - HMRC does not give a fook because lack of proper VAT receipt means you can’t recover VAT from them

[TestMangler]

You have 1, maybe as many as 4, invoices per month plus maybe a purchase each year (if you have a new laptop). Many (real) small businesses have thousands to process. Not all goods are 20%, some goods they buy and/or sell are zero rated (for example).

This. VAT is not difficult for contractors. For real businesses it can be pretty time consuming.

[Brussels Slumdog]

All my customers (agencies) are UK based so will I have to charge VAT after Brexit ?

Sent from my SM-A320FL using Contractor UK Forum mobile app

[vetran]

Strange all the multi-million or Multinational firms I worked for did not have any great troubles with it, maybe they learnt after their hundred thousandth invoice? Or maybe they just put it into the system and ran the vat report like anyone with any sense does?


Project Desperation strikes again!

[vetran]

All my customers (agencies) are UK based so will I have to charge VAT after Brexit ?

Sent from my SM-A320FL using Contractor UK Forum mobile app

Probably.

[Whorty]

Strange all the multi-million or Multinational firms I worked for did not have any great troubles with it, maybe they learnt after their hundred thousandth invoice? Or maybe they just put it into the system and ran the vat report like anyone with any sense does?


Project Desperation strikes again!

Of course large multi national, multi currency companies can deal with this. They employ large departments of Finance staff, including VAT, Tax and Treasury experts. Strangely, SMEs don't have the same resources to hand in house.

You do understand the difference between an SME and a large multi national company don't you?

Why not try to think before you type in future?