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ACCA Says SMEs Should Defer VAT Payments

VAT rise – it’s not just consumers who have to pay, says ACCA The recent VAT (Value Added Tax) hike has repercussions for small businesses, says Chas Roy-Chowdhury, head of tax at the Association of Chartered Certified Accountants (ACCA). Chas Roy-Chowdhury says: “All businesses – whether small or large – must now pay an extra 2.5% more for their purchases from their suppliers. This will be more of a problem for those that are not VAT-registered. However, most firms that are over the VAT threshold – those that have a turnover of at least £70,000 – can recover the costs.” “But for those firms under the VAT threshold, they will end up paying more for their goods. As a result, there is a chance that they will increase prices to recoup these costs. SME owners will no doubt ha... »