VAT shock for thousands of small businesses if MPs back May’s Brexit deal
Hundreds of thousands of small businesses face a VAT shock if Theresa May’s Brexit deal goes through, campaigners claimed last night.
Small firms currently do not have to charge VAT on goods and services if their annual taxable turnover is less than £85,000 but an EU directive, expected to come into force next year, would reduce this to £76,700.
The People’s Vote campaign which wants a second referendum claims Britain would have to implement this directive if MPs back Mrs May’s withdrawal agreement.
This is because Britain would have to abide by EU rules during the transition period, without having the power to veto changes we do not like. The transition period lasts until at least the end of 2020.
Europeans face having to send billions more to Brussels in a no-de...