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Discuss United Kingdom Budget 2018. in the Business Related area at ElectriciansForums.net

essex

Forum Mentor
Anyone got any tips of what to expect?

I have heard there is a possibility the VAT threshold will be reduced to £45k.
 

Murdoch

Electrician's Arms
If they do that the cash transactions will increase massively
 

Murdoch

Electrician's Arms
If they do reduce the VAT threshold it's going to be like not issuing tax discs ....a saving of x wasn't achieved as evasion has increased massively.
 

MDJ

The Muppet Police
Forum Mentor
Anyone got any tips of what to expect?

I have heard there is a possibility the VAT threshold will be reduced to £45k.
I reckon the 40% threshold will go up a bit, VAT down a bit and the tax start of rate up to 12,500. Corporation Tax back up and business rates down, due to Debenhams struggling.
 

Gavin John Hyde

Electrician's Arms
If they do that the cash transactions will increase massively
I know of a few tradespeople around here who do a lot of 'cash work' they are doing nearly all the small quick jobs as cash and the bigger longer ones through the books to save on vat.
If they tinker with vat too much this will become the norm.
 

Murdoch

Electrician's Arms
I've encountered a person who keeps his "income" low by doing lots of cash work - then gets Tax Credits ....
 

Murdoch

Electrician's Arms
IMHO the VAT threshold should rise to £100K if you have an apprentice .......
 

GMES

Hairy and proud
Staff member
Admin
I can never get my head round why a business owner would intentionally try to stay under the vat threshold, all you are doing is stunting the growth of your Company.
And staying under it you're never going to get anywhere in life, I know people can do cash jobs to keep under it but again you are creating a Ceiling for your business when I thought the whole point was to do and be the best you can in life.
I can just imagine Richard Branson and Alan sugar sat in the pub trying do the sums to keep under the vat threshold.
This is just my opinion by the way and no offence is meant to anyone under the threshold.
 

Murdoch

Electrician's Arms
I can never get my head round why a business owner would intentionally try to stay under the vat threshold, all you are doing is stunting the growth of your Company.
For me its very simple - The VAT threshold for this year is £85K revenue ..... I have no plans to expand and don't have any need to be VAT reg

Why complicate matters if you don't need to...
 

GMES

Hairy and proud
Staff member
Admin
For me its very simple - The VAT threshold for this year is £85K revenue ..... I have no plans to expand and don't have any need to be VAT reg

Why complicate matters if you don't need to...
But surely the only reason you have no need to go vat registered is because as you say you never expanded.
I just find it a funny mindset for any person to have that when setting up a business they start with an attitude of not wanting to grow that business.
 

Murdoch

Electrician's Arms
But surely the only reason you have no need to go vat registered is because as you say you never expanded.
I just find it a funny mindset for any person to have that when setting up a business they start with an attitude of not wanting to grow that business.
Why would I want to expand?

The whole reason to be SE is that I can suit myself ....... and not have people to answer to ................ or be responsible for ...........
 

GMES

Hairy and proud
Staff member
Admin
Why would I want to expand?

The whole reason to be SE is that I can suit myself ....... and not have people to answer to ................ or be responsible for ...........
Just to clarify, I am not saying you personally should go vat registered it's more a general statement to anyone who sets up in business.
I fully accept some people want a simple and steady life, like I say I just find it strange to set a ceiling on their business before they even start.
 

MDJ

The Muppet Police
Forum Mentor
I agree with the APE actually, if people want to stay small then fine, but avoiding VAT will stop your company growing and I think most people want to make money if life, JMO.
 

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