VAT – Planning for Uncertainty

The doubt has increased since the Brexit if the government and the business plans for the future has an effect on VAT. The tax was introduced in 1973 and is a relatively young tax in UK terms. But VAT has wound its way into the system with ruthless efficiency.

Now that the Referendum happened and the decision is clear that the UK will leave the EU, the UK is able to do whatever they want regarding the VAT. According to VAT specialists, the only thing for certain is that it’s going to take a long time to unwind. At the moment, no one knows what is going to happen. There will be a lot of noise and rumours the next couple of years but there are no concrete timetables or information until the legal process starts.

Some VAT specialists say that HMRC may oppose at major reforms to the VAT system because the sales brings in around £115bn a year for the government. So it is a good and easy income for the government. On the other hand there will be no need for referrals to the European Court on VAT matters so in time this tax is likely to become more distinct in the UK.

Although a VAT strategy remains crucial for businesses to succeed and prosper while the UK continues to go through the process of extracting itself from the EU.

If you are a business registered with VAT and looking for an accountant, contact us for VAT and bookkeeping. We act as accountants for small businesses in the areas of Fulham, Barnes, Hammersmith, Putney and Chelsea.

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