Home Skip Navigation LinksNews News Story

<< back to previous page

Increase in VAT threshold could create graduate jobs

Published: Wednesday, 15 December 2010   Category: All Graduate job news

Hundreds of graduates could find employment if the VAT threshold is increased, say a leading business organisation.

Last week, the Federation of Small Businesses (FSB) announced that up to 35,000 jobs could be created in small firms if the government raises the threshold at which small firms start to pay VAT.

FSB commissioned a report by Centre for Economics and Business Research (CEBR) which suggested that small firms would be hit hard by the value-added tax hike.

The report suggested that a rise to the limit at which small businesses pay VAT was increased from £70,000 to £90,000.

CEBR's paper also suggested that any prospective loss in company tax revenue would be more than offset by the potential £13 billion which will come from the increase in VAT to 20 per cent.

John Walker, national chairman of the FSB, said: "If the Government is truly committed to a private sector led recovery, then it must implement a [programme] to allow small firms to grow and invest."

The FSB is the UK's leading business organisation with over 210,000 members. Its aims are to protect and promote the interests of the self-employed and all those who run their own business.

Find graduate jobs at gradplus.com

news archives...

Email this page to a friend Facebook Twitter DZone It! Digg It! StumbleUpon Technorati Del.icio.us NewsVine Reddit Blinklist Add diigo bookmark