Welcoming the announcement, Julia Kermode, chief executive of The Freelancer & Contractor Services Association (FCSA) said her organisation was “extremely pleased that there will be no knee-jerk reaction to lower the VAT threshold”. “It is essential that we do not disrupt the economically important army of highly skilled contractors that provide necessary services to businesses, and we welcome the chancellors plan to consult on whether the VAT threshold could better incentivise growth.? However, Labour Party MP Gordon Marsden warned that the move only represented a temporary concession to small business fears, with the “fundamental review”?due to arrive in 2020.
.@PhilipHammondUK notes FSB concerns about VAT threshold and freezes it at ?85,000 for the next two years – good news as VAT is already a big burden, with small firms spending a working week each year dealing with their VAT obligations #Budget2017pic.twitter.com/gvGf44zwuk? FSB (@fsb_policy) November 22, 2017
Chancellor has done nothing to help small businesses #Budget2017 over exemption from VAT. Has frozen threshold at ?85k & threatened fundamental review in 2 years. More small businesses will fall into VAT collection w 3% inflation and climbing ? Gordon Marsden MP (@GordonMarsden) November 22, 2017
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