BUDGET 2002: Flat rate VAT for small firms

Businesses with turnover of up to £100,000 per annum are to be given a flat rate VAT calculation instead of recording the charge on every sale.

Speaking in today’s Budget, Chancellor Gordon Brown said that the change would reduce the burden of administration on small businesses.

He also announced that automatic fines issued by Customs and Excise, a real annoyance for many small businesses, would be abolished.

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