Tuesday, 24 July 2012

VAT 77(k)

The government is having a go at people who are willing to pay plumbers cash-in-hand to avoid having to pay VAT.

I'm not sure why they're singling out plumbers. To register your business for VAT in the first place you have to be turning over £77k a year. I don't know many individual plumbers with that amount of business.

I would imagine any being lucky enough in having that level of turnover would try to keep it just under the £77k to avoid the red tape, hassle and increased cost (and hence uncompetitiveness) that goes with VAT registration.

The Daily Mail targets cleaners. Most cleaners I know aren't even in the tax bracket in the first place, let alone in the VAT category.

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