Jeremy Hunt’s VAT Boost Gets Small Businesses Pumped
During the spring budget, the newly‑appointed Chancellor, Jeremy Hunt, let the House of Commons know that a 10‑k pound jump in the VAT registration threshold will be coming in on 1 April. Think of it as a boost that lets even the tiniest shops finally breathe.
What’s the big deal?
- From £80,000 to £90,000 – that’s a full ten thousand pounds of extra room before businesses have to start charging VAT.
- “Tens of thousands of businesses have it in their sights,” Hunt said, suggesting that a few dozen will be saved from the administrative headache.
- And it’s not just the £200 million fund (yeah, big numbers, but better than a lot of other things) – it’s a direct push to grow the economy.
Full Expensing: The Tax Cut That’s Gaining Cheers
Hunt is also rolling out full expensing to leased assets. “If it’s made affordable, we’ll do it fast,” he told MPs. That means businesses can write off the entire cost of new equipment, making their bookkeeping a lot simpler and their pockets a little thicker.
- The CBI and Make UK wrapped their arms around the move, calling it “a game‑changer” and the “single most transformational thing” to fire up the UK economy.
- Put simply, it’s a £10 bn tax cut – the biggest tax incentive of any big G7 and European nation.
Reaching the Smarter Squeeze‑Fort Cost‑Share
Next stop: the “Growth Guarantee Scheme,” which is the next level of the Recovery Loan Scheme. Hunt promises £200 million of extra funding to help 11,000 SMEs get the financing they need.
He’ll keep the climb steep but not too steep. With the new VAT threshold in place, “many more” will choose to invest and grow – and not burden themselves with needless tax delays.
Bottom line: Thin‑margins start to loosen, thanks to Jeremy Hunt’s move.
With the budget in the UK’s pocket, the only thing tough is keeping your coffee at a reasonable price. Cheers to the next chapter of growth!
