Let all small businesses earn £85k before they pay VAT. Only pay VAT on earnings over it.
The Issue
Support SME’s and lets try and get our high street and empty retail units filled again, and save businesses from closing.
Hundreds of businesses face financial hardship with many closing over recently years. Most just about break even. The extra headache that then makes it not worthwhile for most to continue operating and staying open is VAT.
Most of our highstreets are filled either with either empty units or small businesses that are just about breaking even, most making loses. If change doesn't happen then the good old local shopping on highstreets will soon be gone and a thing of the past. It's time that we support all SME's that help fill our highstreets and create local job.
One big thing on top of soaring rents and business rates for firms (which thankfully has been assisted with this next financial year) is VAT.
Value Added Tax, works well for many organisations, just for many it doesn’t as well.
Please read, sign and share this petition and help get this to parliament.
Trades, such a builders, painters, decorators, accountants, solicitors to name a few, its very easy for them to say that’s £200 PLUS VAT.
When it comes to other industries like, cafes, restaurants, beauty and hair salons to name a few, you can’t at the end say that’s £99 plus VAT, the VAT has to be included in the price. If we look at lot of these companies there are a large amount that are not VAT registered, which in turns makes the profit a lot less for those that are VAT registered as they cannot over change the service that is already mainstream set by those unregistered businesses.
We need a system that is fair, that works for everyone, that gives the same to all, encourages those to not be worried to go over the VAT threshold, and gives confidence that they can still earn the same before they hit it and not suddenly lose 20% of their takings by being just a couple of pounds into the threshold.
If we can all work together and get the Government to come up with a package that is fair, then we can bring back the high street, we can encourage more businesses to be not afraid to go VAT registered and to go over the threshold.
The VAT threshold is set extremely low, if we take into account soring energy bills, staff wages, shop rent among others, a small business in today’s markets can easily need to take over £85k a year just to break even. That’s before they even start looking at the stock needed to operate, equipment needed on lease agreements and many more. We are not doing enough to support our smaller businesses, many of which don’t make profit or huge profits, and more needs to be done.
Let’s reform our VAT system and make it work for everyone, and give everyone the same chance to run a business and for it to succeed and work by giving us all the same amount VAT free before we pay any VAT.
What could the system look like?
Everyone SME with a turn over of say £500k a year are all allowed to have a VAT free allowance of £85k and only when you have earnings over that you pay 20% VAT on those above earnings only. A bit like our PAYE system, everyone pays the same until they hit the next threshold, meaning everyone has an equal amount at the start.
What if we even looked at the VAT threshold and also considered having a tired system for VAT, start at 5% VAT and work its way up the more you turn over....
All these options needs to be looked at if we want to continue to fill our high street with shops, keep people in jobs and have small SME’s around. As basic bills have increased and sored over recent years along with wages and taxes more turnover is needed to just break even.
If we want to help keep those people in jobs, small businesses open, high street units filled, then we need change, otherwise it’s a vicious circle that will only get worse and keep sparling down.
*Data from Google, so apologies if not 100% correct, but as you can see there has been little change for 6 years in the VAT threshold, yet prices including rates, wages, materials to name a few have increased substantially.
2010 £70k
2011 £73k
2012 £77k
2013 £77k
2014 £79k
2015 £81k
2016 £83k
2017 £85k
2018 £85k
2019 £85k
2020 £85k
2021 £85k
2022 £85k
The Issue
Support SME’s and lets try and get our high street and empty retail units filled again, and save businesses from closing.
Hundreds of businesses face financial hardship with many closing over recently years. Most just about break even. The extra headache that then makes it not worthwhile for most to continue operating and staying open is VAT.
Most of our highstreets are filled either with either empty units or small businesses that are just about breaking even, most making loses. If change doesn't happen then the good old local shopping on highstreets will soon be gone and a thing of the past. It's time that we support all SME's that help fill our highstreets and create local job.
One big thing on top of soaring rents and business rates for firms (which thankfully has been assisted with this next financial year) is VAT.
Value Added Tax, works well for many organisations, just for many it doesn’t as well.
Please read, sign and share this petition and help get this to parliament.
Trades, such a builders, painters, decorators, accountants, solicitors to name a few, its very easy for them to say that’s £200 PLUS VAT.
When it comes to other industries like, cafes, restaurants, beauty and hair salons to name a few, you can’t at the end say that’s £99 plus VAT, the VAT has to be included in the price. If we look at lot of these companies there are a large amount that are not VAT registered, which in turns makes the profit a lot less for those that are VAT registered as they cannot over change the service that is already mainstream set by those unregistered businesses.
We need a system that is fair, that works for everyone, that gives the same to all, encourages those to not be worried to go over the VAT threshold, and gives confidence that they can still earn the same before they hit it and not suddenly lose 20% of their takings by being just a couple of pounds into the threshold.
If we can all work together and get the Government to come up with a package that is fair, then we can bring back the high street, we can encourage more businesses to be not afraid to go VAT registered and to go over the threshold.
The VAT threshold is set extremely low, if we take into account soring energy bills, staff wages, shop rent among others, a small business in today’s markets can easily need to take over £85k a year just to break even. That’s before they even start looking at the stock needed to operate, equipment needed on lease agreements and many more. We are not doing enough to support our smaller businesses, many of which don’t make profit or huge profits, and more needs to be done.
Let’s reform our VAT system and make it work for everyone, and give everyone the same chance to run a business and for it to succeed and work by giving us all the same amount VAT free before we pay any VAT.
What could the system look like?
Everyone SME with a turn over of say £500k a year are all allowed to have a VAT free allowance of £85k and only when you have earnings over that you pay 20% VAT on those above earnings only. A bit like our PAYE system, everyone pays the same until they hit the next threshold, meaning everyone has an equal amount at the start.
What if we even looked at the VAT threshold and also considered having a tired system for VAT, start at 5% VAT and work its way up the more you turn over....
All these options needs to be looked at if we want to continue to fill our high street with shops, keep people in jobs and have small SME’s around. As basic bills have increased and sored over recent years along with wages and taxes more turnover is needed to just break even.
If we want to help keep those people in jobs, small businesses open, high street units filled, then we need change, otherwise it’s a vicious circle that will only get worse and keep sparling down.
*Data from Google, so apologies if not 100% correct, but as you can see there has been little change for 6 years in the VAT threshold, yet prices including rates, wages, materials to name a few have increased substantially.
2010 £70k
2011 £73k
2012 £77k
2013 £77k
2014 £79k
2015 £81k
2016 £83k
2017 £85k
2018 £85k
2019 £85k
2020 £85k
2021 £85k
2022 £85k
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Petition created on 16 March 2023