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VAT Rise - The hidden Truth 36% rise

VAT Rise - the hidden truth in the small print

Vince Cable the Business Secretary Accuses the Banks of damaging small businesses.

Just who is damaging the smallest of businesses.

VAT will rise from 17.5% to 20% in January – this is a 14% rise.

The smallest of businesses can use the VAT Flat Rate Scheme designed to help small business with reducing admin and time.

For example in the ‘Other Retail’ Section the Rate was 5.5%. That is simply paying out 5.5% of turnover – really simple to administer.

However this rose from 5.5% in Jan 2010 to 6.5% a rise of 18%

In January 2011 it will rise from 6.5% to 7.5% a rise of 15%

How does Vince Cable and his Government think this is helping small business?

A rise of 36% in one year!

The Conservative and Liberal Government are hammering small business and hiding it in the small print of the budget.

Headline visible rate up 14%
Hidden in the small print and only applicable to small business a 36% rise!