MEMBERS OF the UK200 Group of accountancy and lawyer firms, have given a mixed reaction to suggestions by shadow chancellor Ed Balls that next month’s Budget should include a cut in VAT and a three pence cut in income tax for a year, in an effort to boost economic growth.
David Ingall, of JWPCreers, said a VAT cut would cut the cost of living, but also said that “slashing red tape” was probably more important than tax cuts.
Ian Abrey, partner at Hillier Hopkins, said the suggested tax cuts might not boost consumer spending and economic growth
“Mr Balls does not say what the total cost of the proposed measures would be and there is no guarantee that the windfall would find its way into consumer spending to give the UK economy a nudge in the right direction,” he said.
Andrew Watkin, of Baker Watkin, said raising the tax-free personal allowance to £10,000 per year was a good idea “as those who are not so well off will see a long term permanent increase in their income, whereas a reduction in VAT would only be temporary”.
The UK200Group is an association of chartered accountancy firms and law firms, with over 150 offices in the UK and 50 member firms worldwide.
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward