FPB: SMEs should benefit from VAT relief scheme
VAT relief scheme under-used by small businesses, says FPB
Small businesses should take advantage of a government scheme that would
allow them to delay VAT payments.
The
Forum
of Private Business said that the government’s cash accounting
scheme, where small businesses can delay VAT payments until they’ve been paid by
customers, would protect them against exposure from late payers and bad debtors.
‘Many ideas are being put forward to help small businesses with their cash
flow, but few can deliver instantaneous improvement,’ said the FPB’s chief
executive, Phil Orford.
The FPB also want the scheme extended so more businesses can take advantage.
Currently only those with a turnover of less than £1.35m can join the scheme,
and the FPB wants the level opened to £2m.
‘Extending the [scheme] would mean that many more small businesses would not
have to pay customs until they are paid themselves. It would be a form of bad
debt relief, with little or no cost to the government.,’ said the FPB’s VAT
adviser Andrew Needham.
Further reading:
Tories plan National Insurance
giveaways
