Feeds

Osborne urged to end islands VAT-holiday by small-biz group

Big boys cram their stuff through florists' loophole

Build a business case: developing custom apps

Chancellor George Osborne should end the right of companies to import low-value items VAT-free from the Channel Islands and do something to reduce petrol and diesel prices, says a small-biz body.

Ahead of Wednesday's Budget various runners and riders are jostling for attention. The Forum of Private Business said it was time to end the exemption for good.

The Lower Value Consignment Relief was meant to help out flower sellers but has been widely exploited by the likes of Amazon and Tesco - CDs and DVDs sourced from their warehouses in the Channel Islands need not pay VAT. Packages worth less than £18 can be sold VAT-free.

The Forum has written to Osborne calling for the £130m a year lost to the Treasury by these VAT rules should be reinvested into Community Investment Tax Relief (CITR), which encourages private investment into Community Development Finance Institutions (CDFIs).

This scheme currently enjoys tax relief and raises money for investment in social enterprises and small businesses. That relief ends in 2012.

Osborne is also expected to stop a planned increase in Air Passenger Duty. Osborne said in interviews at the weekend he wanted to help "the squeezed middle".

He might also stop planned rises on fuel duty or even introduce a longer-term scheme to control the cost of petrol and diesel.

There have been heavy hints that this could include a move to cut the tax on fuel as prices go up, and increase it when the price falls again. This sounds great, but potentially expensive and risky.

Treasury moves to bring together income tax and national insurance payments are likely to be a harder sell to taxpayers. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?