Think Tank Calls for Single Consolidated Tax on SMEs

The Centre for Policy Studies has proposed a new simple consolidated tax (SCT) to replace the four main taxes currently paid by small and medium sized firms.

The radical proposal would see corporation tax, employer’s national insurance, VAT and business rates consolidated into one tax paid by firms turning over less than £1 million.

Small businesses are the heartbeat of Britain’s economy. Some 5.6 million small firms employ around 13 million people and generate three-quarters of all new jobs.

Calls to increase VAT threshold

The Association of Independent Professionals and the Self-Employed (IPSE) has called on the Chancellor to increase the VAT threshold from £85,000 to incentivise self-employed workers.

The plea was issued in response to a government consultation on the VAT threshold.

This consultation was opened after the Office for Tax Simplification (OTS) suggested that the threshold should be lowered significantly to £26,000 - the UK’s national average wage.