Policy Advisers Suggest UK Could Widen VAT Catchment Area (1)

The UK should reform its value-added tax to provide certainty and consider bringing more businesses into its fold if it can’t tweak rates, policy advisers said Wednesday.

Lowering the VAT application threshold and simplifying the tax law are some areas that His Majesty’s Revenue and Customs can consider, they said at a London event organized by Institute of Chartered Accountants in England and Wales.

Since the Labour government has committed to not increasing VAT rates, it can instead look at broader areas of reforms to the indirect tax, including lowering the threshold, Gemma Tetlow, chief economist at think tank Institute ...