UK Knack Group – VAT Threshold Rise Would Create Jobs
(PRWeb UK) December 28, 2010
Leading executive careers consultancy, UK Knack Group, has hailed a mooted lifting of the Value Added Tax threshold for small businesses as “a first class proposal, one that would mean major financial savings and help create jobs.”
The suggestion has been made as the result of a study ordered by Britain’s Federation of Small Businesses, which released figures indicating that if the VAT threshold were to be lifted by 20 thousand pounds from its present level of 70 thousand, businesses could save about 700 million pounds on VAT annually.
UK Knack Group’s Managing Director observes, “There is a further 162 million a year to be saved from the lessening of paperwork and administrative fuss, and that’s money that could be applied to job-generation throughout the nation’s small and medium businesses.”
The problem for SMEs is compounded by the impending 2.5 percent VAT rise, a cost that larger firms can absorb, while small ones will struggle. “This,” says UK Knack Group’s Managing Director, “means that the corner stores, milk bars, hairdressers and the like will be inclined to pass the increases on to their customers, or to cut costs in other ways – such as shedding staff, which is the last thing we want.”
John Walker, national chairman of the FSB, claims that the potential revenue loss to the government by increasing the sales tax threshold to £90,000 would be more than outweighed by the VAT increase from next month.
UK Knack Group agrees wholeheartedly, urging Westminster to capitalise on, not exploit, Britain’s economic recovery.
About The Uk Knack Group
Built on decades of experience the Knack team consists of some of the most experienced professionals in the UK and abroad who have helped thousands of businesses and people to be more successful.
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