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Old 17-11-2008, 02:21 PM   #3 (permalink)
Brian Turner
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Join Date: Dec 2003
Location: Near Inverness, Highlands, Scotland
Posts: 7,891
Default Re: Gordon Brown mulls VAT slash

Thanks for the reply, howardg.

Adding VAT to services means having to have higher pricing than necessary.

Charging VAT isn't so much of a problem when working with other VAT registered companies, but Gordon Brown doesn't realise there's a big layer of sole traders who aren't VAT registered. Charging VAT to such people just means having to charge a pointless tax on them.

So in a best case scenario, being registered for VAT just turns a copany into a tax collector for a tax on services.

In a worst scenario, it means charging a tax on clients that either yourself or the client may feel they cannot afford.

Corporation tax I can accept as a tax on profits - but VAT is just a tax for being a business, which means raising prices to account for it, as well as the issue of not all sectors are VAT eligible.

Maybe I just hate VAT.
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