Budget 2003: Red tape help for SMEs
The chancellor has gone some way to appease small businesses and sole traders by tackling a number of red tape issues.
Link: Budget special
Sole traders and small businesses with a turnover of £56,000 or less will no longer have to register for VAT, removing a huge burden from their shoulders.
Brown claims it is the highest threshold allowed under EU law.
In addition, Company Law definitions of small businesses will be aligned with new EU maxima. In this way more small businesses will benefit from simpler accounting and reporting arrangements, information technology allowances of up to 100% and up to 40% allowances for plant and machinery.
There will also be reduced import VAT compliance costs as well as consultation on raising the statutory audit threshold.