Small and Medium-Sized Companies Being Urged to Make Most of Tax Breaks
THE FSB in Wales is urging small businesses to take advantage of tax breaks available to SMEs in this period of continued economic uncertainty. The business group is encouraging traders to look at the simplified flat rate VAT system. Under the standard system, a trader records the VAT invoiced through sales, and deducts the VAT paid on purchases to produce a net figure payable to Customs & Excise.
With the flat rate system, the trader can ignore the amount of VAT paid on purchases. The amount payable is a set percentage of VAT charged on invoices, that varies according to the trade sector of the firm.
The FSB is urging small firms to check their position. The facility is only available to traders whose annual turnover is less than pounds 150,000 - up from pounds 100,000 at its inception.
Janet Jones, chair of the FSB in Wales, said: "Businesses I speak to regularly seem unaware that flat rate VAT exists and how it operates. …