This is an immediate call to action for the UK government to pause VAT for all UK businesses.
This money is desperately needed to help companies stay afloat over the spring and summer months due to the COVID-19 pandemic. This will not be a loan, grant or bailout so will be exempt from interest and repayments. This money is currently INSIDE all VAT registered businesses and Q1 is due to be paid to HMRC at the end of the next quarter (6 weeks’ time for most companies).
This could be the difference between staying afloat or closing for hundreds of thousands of businesses across the UK by utilising money already INSIDE the economy.
The idea is relatively simple:
- Suspend all VAT for small businesses
- Businesses still submit VAT returns as normal
- Businesses owing VAT will not pay (zero on account)
- Business owed VAT rebates will still claim them
This approach will give HMRC and the government time to alter electronic systems and give desperate breathing space to businesses across the whole nation in every single sector.
If you want to support this plain and common sense approach to economic assistance in our greatest time of need then please sign this petition and force the government to act!
Please share far and wide – time is of the essence!
According to the most recent quarterly VAT figures the VAT that HMRC collects is roughly £32.2bn per quarter which is around 10.2% of the £330bn Chancellor Rishi Sunak has said is available – or to put it another way is 20% of the bail package for two quarters that is already inside UK businesses in and is available immediately with zero admirative effort from any party.