Mon, 10 Jan 2011 | BUSINESS NEWS
The increase in VAT from 17.5 per cent to 20 per cent is expected to affect small and medium-sized businesses, (SMES) according to new research.
The Federation of Small Businesses surveyed SMES across the UK and found that 70 per cent were concerned that they would face a ‘disproportionate hit’ by the tax increase.
Taking VAT to 20 per cent is predicted to net the Treasury more than £12 billion each year.
Chancellor George Osborne defended the increase, saying that he thought it was a ‘reasonable rate to set, given the very difficult situation we find ourselves in.’
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