Change the VAT registration threshold to Profit based not turnover based, while keeping the current level.

Why is this idea important?

I run a micro business, actually more of a mini micro business! The VAT threshold makes growth very difficult because to make going over the threshold and entering the VAT regime affordable means that we would have to make a major jump in turnover to survive. This is because the threshold is based on turnover. This however is not a level playing field as some businesses make say 10% others 30% or more profit.

On this basis I would like to see the thrshold be changed to a profit base rather than turnover while retaining roughly the current level. This would give 1000's of firms like mine the opportuity to expand without having to live in fear of crossing the threshold and end up being worse off (and adding another regulatory burden) despite the growth because of VAT.

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