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Business loan for better tax environment
Reported on Tue, 28 Mar 2006
The government is aiming to simplify the VAT payments made by British companies, but a business loan may provide the answer for firms frustrated by current tax levels.
Under the government's widened Annual Accounting scheme, more than a million businesses are now eligible for simpler organisation of VAT, with a single annual return and monthly payments.
"We know a lot of businesses find a quarterly VAT bill difficult to manage in terms of cashflow," says John Brandwood of HM Revenue & Customs and the department hopes the new plans will enable companies to spread charges across the year.
Currently, only companies with a turnover of up to £660,000 are eligible join the scheme, but after April 1st, the threshold will be extended to take in those with a turnover of £1.35 million.
The government's actions have been interpreted as a move to revive support among the business community, after industry bosses expressed disappointment with last week's budget, when calls for a reduction in company taxes went unheeded.
Firms who have been stifled by complicated tax arrangements could take advantage of a low-rate business loan to kick-start their performance in a friendlier economic climate.
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