THOUSANDS more small businesses will have to pay VAT under Jeremy Hunt’s plans for a stealth tax to help balance the books.
The Chancellor is set to freeze the threshold companies must start paying the levy at £85,000 turnover rather than raising it with inflation.
Mr Hunt was reappointed as Chancellor by Rishi Sunak in late October
It means more companies will be dragged into paying the tax without Mr Hunt having to put up headline rates.
The threshold was already frozen until 2024 but this will likely now be extended until 2026 to claw in even more cash for the Treasury coffers.
Government sources suggested tax thresholds are set to be frozen virtually across the board in a sneaky way for the Chancellor to plug the £60billion black hole.
Income tax threshold freezes will drag millions of workers into paying the higher rate over the next few years.
Rishi Sunak and Mr Hunt are meeting today to fine-tune their proposals ahead of next week’s Budget.
Did you miss our previous article…
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