To help small business in this country
I run a small restuarant and have been trading for just over a year. It has been hard to beat the ressesion but we are still paying the bills. For the 1st quarter of this financial year I registered for VAT. The overall running costs of a restuarant is high, staff, rent,rates, serevices in the region of £60k. As most of our purchases are non-vatable we cannot claim much back. We are a very seasonal business and do most of our trade in the summer. I was devistated when I was told my VAT bill is £4000 for the 1st Quarter of the year. All of our cashflow to help us through the winter has been eroded in this one bill. Surely this isn't a fair tax for a fairly new business who's turnover is going to be under £150k we are not even in a profit situation yet. We have now regerstered for the flat rate but that doesn't really help as we then can't claim any VAT back that we have paid so it works out that it is just in our favour but only by a few pounds. I can't see any help from the government in my situation.
There should be a fairer system for the small start up business possibly on a sliding scale for VAT.