Potential impact of new tax regime

Midlands accountancy firm Salhan Accountants is warning businesses to monitor an upcoming review of VAT, in case revised rules inadvertently drag them into the new digital tax regime. Following the Chancellor’s Spring

Statement, the Government released a new consultation, which seeks to review the current VAT registration threshold. The threshold

marks the point at which companies must register for VAT, currently £85,000. However, there have

been calls to reduce this to bring it in line with other countries and to remove barriers to growth that the threshold poses to smaller businesses. In comparison, the German VAT

threshold is €17,500 (£15,291), while the European-wide average is around £20,000. Dr Anjulika Salhan (pictured),

director at Salhan Accountants, said: “The UK has one of the highest VAT thresholds in the world. While this means that many start-ups don’t have to register for VAT initially, further down the line it

can limit a company’s growth, as owners are reluctant to exceed the threshold thus increasing their tax bill and administration.” Dr Salhan added that VAT

registration also required businesses to submit regular quarterly VAT returns which could take away time from running and growing a small business. Making Tax Digital

regime.” The new digital

tax system will launch next year,

requiring all businesses at or over the VAT threshold to

submit digital VAT records

every three months using HMRC approved software. Dr Salhan said: “Those already

over the threshold are rushing to get themselves prepared for ‘Making Tax Digital’, but those underneath it are likely not to have even considered how it could affect them. “This means that many

companies may find themselves completely unprepared if a sudden drop in the threshold led to them being dragged into this regime.”

Bank funds nursery

A West Midlands childcare business has purchased another nursery school following funding from Barclays. Little Bunnies Ltd –

owned by husband and wife team Kartik and Trihasta Patel – has purchased the Jackalberry Nursery in Coventry which received an ‘outstanding’ OFSTED rating from its last inspection. The facility offers places for 68 children. Director Kartik Patel said: “When the opportunity arose to purchase

Sector Focus

Hopping to it (from left): Manoj Patel, Kaylee Gaffney, Kartik Patel, Debbie Barnes-Adderley (all Little Bunnies)

this nursery we jumped at the chance as it benefitted from a good reputation in the area. We were looking to expand our own business and this seemed like a natural fit with our own facilities and ethos of the business.” The couple own three further nurseries – George Elliot Kindergarten

in Coventry, and Little Sneakers in Redditch and Studley – where they offer childcare facilities for 122 children between the ages of birth and five-years-old. Manoj Patel, relationship director at Barclays, said: “Kartik and

Trihasta have worked hard to build a good reputation in the sector. “They have plans to expand the business further and have a number of innovative ideas on how to move the business forward.”

We are an independent financial services consultancy that provides solution based pension and employee benefit services to employers, scheme trustees and members.

Our team of experienced professionals will design, maintain and review your employee benefit arrangements so that they work efficiently and deliver real value.

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Further information is available at: W: T: 0121 726 7061 May 2018 CHAMBERLINK 55

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