Britain's VAT system is set for major reform after a review commissioned by Phillip Hammond found the current rules are hurting the economy.
The review, carried out by Government advisers at the Office for Tax Simplification, found that the current threshold above which businesses pay VAT is discouraging small businesses from growing (AtW's comment: spot on - let's change rules to discourage small businesses from being created in the first place...).
The report, due to be published next week, will lay out options which could to be used to create a windfall for the Treasury in Phillip Hammond's Autumn Budget latest this month.
One of the suggested options would see a million extra businesses and self-employed people having to charge customers an extra 20 per cent for goods and services for the first time.
It comes after reports that the Chancellor is planning a substantial tax giveaway to help "Generation Rent", suggesting new ways to increase revenue through tax may also be being looked at.
One million businesses and self-employed people could be dragged into VAT system*
Vote Tories - Vote for DOOM™!!!
The review, carried out by Government advisers at the Office for Tax Simplification, found that the current threshold above which businesses pay VAT is discouraging small businesses from growing (AtW's comment: spot on - let's change rules to discourage small businesses from being created in the first place...).
The report, due to be published next week, will lay out options which could to be used to create a windfall for the Treasury in Phillip Hammond's Autumn Budget latest this month.
One of the suggested options would see a million extra businesses and self-employed people having to charge customers an extra 20 per cent for goods and services for the first time.
It comes after reports that the Chancellor is planning a substantial tax giveaway to help "Generation Rent", suggesting new ways to increase revenue through tax may also be being looked at.
One million businesses and self-employed people could be dragged into VAT system*
Vote Tories - Vote for DOOM™!!!
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