Contact Easy Accountancy
Quote Me
Speedy Tax Returns from Easy Accountancy

Simplified VAT system outlined

The Office of Tax Simplification (OTS) has revealed 8 core recommendations for the government to clarify the VAT system.

It called the current VAT threshold (£85,000 in 2017/18) as the most pressing issue in its Routes to Simplification report, which was labelled as "long overdue" by the Federation of Small Businesses (FSB).

The report claims the VAT threshold in the UK is the highest in the EU and £70,000 higher than the average VAT exemption around the world, which stands at £15,000.

While the UK threshold enables many small businesses to stay out of the VAT system, the OTS claimed recent increases could be costing the economy more than £2 billion a year.

Other recommendations from the OTS include:

  • a review into the reduced rate, zero-rate and exemption schedules
  • a review into the land and property threshold
  • alternatives to remove the need for businesses incurring insignificant amounts of input tax to carry out partial exemption calculations.

Mike Cherry, chairman of the FSB, said:

"This fundamental review of our vastly complex VAT system is long overdue.

"A smoothing mechanism, which doesn't force any more small firms into the VAT system, could encourage more businesses to grow beyond the £85,000 cliff edge.

"We welcome the report's drive towards improving VAT guidance and reducing the massive admin burdens associated with the tax."

Contact us to discuss the VAT threshold.

Why Clients Choose Easy Accountancy

Easy Accountancy offers a low cost, fixed fee accountancy package with all clients receiving their own dedicated, friendly, approachable accountant.

All of our accountants specialise in providing accountancy services to the self-employed, freelancers, sole traders, small to medium sized limited companies and private individuals. All accountants are employees of Easy Accountancy and we never outsource or offshore work.

Our low cost, all-inclusive fixed-fee accountancy service includes unlimited access to your own dedicated accountant throughout the year and covers all your business and personal tax affairs needs.

All our accountancy services include:
  - Unlimited access to your accountant
  - Ongoing advice on how to manage your business
  - Proactive tax advice throughout the year
  - Updates and reminders so you'll never miss a deadline
  - Free bookkeeping software

As a sole trader our fees start at just £60 + VAT a month, for this you receive the above plus:
  - Completion of your Self-Assessment tax return
  - Advice on how much Income Tax to pay
  - Guidance on National Insurance contributions

As a limited company our fixed fee packages are bespoke to your needs, however typically you’ll receive the above, plus:
  - Completion of your year end accounts*
  - Completion and submission of your annual return Companies House
  - The director/s Self Assessment tax return
  - Payroll bureau
  - Dividends and corporation tax computations

We’ve saved our clients up to half on their accountancy bills – if you’d like a quote, click on the quote me button to the right of this page. Alternatively, call us on 01442 275767 or email

*If you would like us to complete your company year end accounts we simply ask that you have been a client of Easy Accountancy for one year or have made 12 monthly payments.