Forum

PRO

VAT threshold to be lowered ?

I've long believed that the VAT threshold should be lowered or abolished to provide every business a level playing field, to reduce cash-no-vat transactions, encourage growth and generate additional tax revenue. It's a subject much discussed on LJN in the past.

The Government's OTS has just published its first review of VAT thresholds, hence are actively considering options to simplify the already complex VAT area.

Various financial pundits are suggesting a reduction to £26K or even £20K could be on the cards, with some even hoping for a £0 threshold (unlikely, I'd suggest).

The FSB produced a White Paper some time ago and are expected to review its recommendations for the SME sector to the Government.

So, it's a "watch this space" situation for now............

You need to be a member of Landscape Juice Network to add comments!

Join Landscape Juice Network

Email me when people reply –

Replies

      • PRO

        unless you are a basic gardener -- in which case there wont be a lot of 'products' to claim back on 

        which case you dont have the advantage of pleasing certain customers with 20% discounts on products to balance some of the increases. 

        i would hope the government are cautious and go for a small decrease aimed at picking up the large amount of people floating just under the limit - who are liable to gain from vat -- rather than hit those at a lower level that fail to gain anything much i can see, and in fact potentially lose a lot. 

        • PRO
          If you were just under the threshold and would “gain” from registering then you would wouldn’t you?
    • I know how VAT works! but there is an increase in cost which will be passed onto the customer.  Also our own costs are going to be increased by 20% plus the cost of the admin!  That's going to be a bitter pill for many customers who are often older and on fixed incomes!

      • PRO

        Not sure I understand that point - what costs will be increased by 20% ?

        • VAT on labour 

          • PRO

            Your post talks about two increased sets of costs ?

            Might just be the way I’m reading your post ....

            • There is going to be an administrative cost attached to becoming a registered business, what that cost is i have no idea yet.  if i charged £100 to cut a hedge last year the cost + VAT would make it £120 but i'm sure somewhere along the line my accountant would have more admin work the cost would be passed on.

              • PRO
                We do all our vat work ourselves as it’s reasonably simple to do yourself with modern accounts packages.
                • I had a look at the last couple of months of out goings and with the amount of VAT i have paid out its not going to be massive task. 

  • PRO

    Great report - did you know that a gingerbread man with chocolate covered trousers is subject to vat, but not if it has chocolate eyes

This reply was deleted.

Industry Jobs

Help us to build luxury climbing frames and treehouses

Overview This is a fantastic opportunity for a carpenter or a skilled outdoor landscaper with good wood skills to join our team. We are a small yet growing high-end manufacturer and installer of amazing climbing frames, tree houses and zip wires. We’re seeking an installer based in the SE to join the team and cover

Mechanic & Service Support Engineer

Working with a team of dedicated hard working enthusiasts in the Grass & Groundcare machinery industry the successful applicant will be responsible for undertaking the build up, pdi, servicing and repairs of a range of grounds machinery. With a range of ability’s and attributes allowing you to work under your own initiative diagnosing and repairing

Grounds Maintenance Operative

GROUNDS MAINTENANCE OPERATIVES Our client based on the beautiful Jurassic coast is a successful, growing and ambitious organisation providing grounds maintenance services across Dorset and landscaping and safety surfacing throughout the South West. They are a forward thinking company with innovative plans to develop in the future. They are looking to recruit a number of

HARD LANDSCAPE TEAM LEADER

We are urgently looking for experienced hard landscapers capable of leading a team and turning plans into finished gardens. Immediate start and good rate of pay for the right person. We are members of the Association of Professional Landscapers and a Marshalls registered installer so an eye for detail and top quality finish are essential.

Latest blog post

Trade green waste centres

If you've received help from the Landscape Juice Network and you'd like to say thank you, why not make a small donation?

The site is maintained as an indpendent industry resource and it's become an essential tool for those working in the landscape industry.

Thank you

Phil Voice

Founder Landscape Juice

Make a donation

LJN Sponsor

Advertising

Blogs

PRO Supplier

Etesia completes portfolio for Scamblers

Scamblers, based in Bourn, Cambridgeshire, believe they now have a complete portfolio of groundscare machinery after they were confirmed as Etesia UK’s newest dealer.

First established in 1974, the family owned business specialise in…

Read more…
PRO

How to Revive a Worn Out Lawn

Is your lawn weedy, mossy, baldy or just plain tired looking? In this blog we’ll show you how to revive your worn out lawn and make your neighbours turn green with envy.

 

Ireland is one of the best countries in the whole world…

Read more…
Comments: 0
PRO

In the first of a several part blog that we are writing, we will explain some of the terms that are often used in lawncare service leaflets and by contractors but many of you out there may not actually understand what they mean!…

Read more…