Didn’t have you down as a ‘do nothing’ type. ;o)

Small business will not be helped in the long-run by operating in a low growth economy where we are all paying off debt rather than using the money for something worthwhile like investing in education.

Under the current circumstances, to take the turnover threshold up to £100,000 would have taken a large number of the smallest companies out of the loop, costing the Government comparably little, and saving the companies a great deal of administration time – this time saving would have been extremely valuable to a microcompany; as much if not more valuable than the money involved.

My MP raised a question for me with the DTI, but was told that the UK threshold is plenty high enough, higher than most of Europe, and so there was not likely to be any adjustment in the near future. Shame that they didn’t take this opportunity to change their opinion.

Thanks for that.

I’m rather of the opinion that the fact there will be an additional £12bn rattling around the economy is good enough.

http://www.smallbizpod.co.uk/news/2008/pre-budget-report-2008-small-business-impact/

Alex makes some interesting and valid points, not least re the 2 million or so non-Vat regged bizzes.

In essence, this means that, although we can’t charge any VAT on our items, as second hand goods are not VATable, the VAT man considers it reasonable to charge us VAT on our gross profit, i.e. the difference between what we get in, and what we pay for the goods. No, we can’t deduct any expenses made in getting the profit, just the difference between the two. So this means that I pay an additional 17.5% tax on my gross profits, regardless of whether I make a taxable net profit or not.

As a micro business, this has always been a real thorn in my side. So for the next year, I will have a 2.5% bonus that I can pay to myself instead of the government! Yay!