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Reduce vat for all service industry i.e beauty,hair etc

Comment 5th August 2010

As the owner of a small beauty salon our incentive to keep our profits under 60000 a year means we do not have to regester to pay vat, however once we go over this limit our profit  is then eaten ino considerably since our job is more about time and sevice given as opposed to a product being purchased.

As a result these industrys either restrict themselves (not good for the economy) or have to earn a huge amount to cover the vat being payed out before it can become profitable which then means enduring several years of breaking even before the profit comes in.

by reducing the vat for these industry would then allow more employees to be employed (increasing work) higher salaries to be paid (happier staff less likely to move ) and prices to remain competitive (i.e prices people are happy to pay therfore increasing public spendng.

Why does this matter?

For businesses like ourselves to grow we need the government to support us to think about making larger profits which can be reinvested into the economy.not doing so leaves these businesses vulnerable and people then have no incentive to push themselves further

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