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SME’s face ‘absurd’ tax system

17-05-2019

The Mail’s Tom Utley highlights the “nightmare” small firms have to face as they negotiate Britain’s “absurd tax system”. He says that as soon as a company “starts getting somewhere” – with turnover of £85,000 – VAT rules mean it has to add 20% to prices, “putting it at a huge competitive disadvantage against smaller rivals.” He adds that the complexity of the system and the paperwork involved “eat away hours of valuable time” that could more profitably be spent developing, producing and marketing products and services. Mr Utley describes his own situation, where his turnover means he charges VAT to anyone who employs his services, saying money he hands to the taxman is claimed back from the Treasury as a tax-deductible business expense. This process, he says, is a “ludicrous money-go-round.”


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