[access-uk] Re: Could this reduce cost for us?
- From: "Carol Pearson" <carol.pearson29@xxxxxxxxxxxxxx>
- To: <access-uk@xxxxxxxxxxxxx>
- Date: Tue, 8 Jul 2008 16:54:18 +0100
Dunno but would hope so ...
Sounds interesting anyway.
--
Carol
carol.pearson29@xxxxxxxxxxxxxx
---- Original Message ----
From: Gordon Keen
To: access-uk@xxxxxxxxxxxxx
Sent: Tuesday, July 08, 2008 4:26 PM
Subject: [access-uk] Could this reduce cost for us?
> Might this be applied to access tech suppliers?
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> Original URL:
> http://www.theregister.co.uk/2008/07/08/ec_vat_rules_smbs/
> Lower VAT could help SMBs amid recession fears
> By Kelly Fiveash
> Published Tuesday 8th July 2008 11:23 GMT
> Small computer outfits could see VAT rates slashed to as low as five
> per cent under new proposals put forward by the European Commission
> yesterday.
> The EC, which is the executive arm of the European Union, said
> (http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1109&format=HTML&aged=0&language=EN&guiLanguage=en)
> it wants to relax value added tax and state aid rules in a move to
> help small businesses (SMBs) cut through administrative red tape and
> promote economic growth.
>
>
> Under the VAT changes proposed, labour-intensive and locally-supplied
> services including restaurants, cleaning and gardening services,
> domestic care and small computer outlets would be eligible for a
> reduced VAT rate, in some cases as low as five per cent.
> EC Commissioner for taxation and customs union László Kovács said he
> wanted to clarify Brussels’ position on reduced rates in the various
> sectors highlighted under the new proposal.
> “I want to provide certainty about the application of reduced rates
> beyond 2010 for labour-intensive sectors and provide all Member
> States with the same options. There is no reason why restaurant
> services, for example, should be allowed to benefit from a reduced
> rate in one half of the European Union but not in the other half," he
> said.
> At present 11 of the 27 EU countries have special arrangements until
> 2010 to levy rates below the standard 15 per cent for services such
> as computer repair shops, hairdressers and catering outfits. While
> the remaining member states, “complicated by a multitude of
> derogations”, cannot apply such an option to their VAT rates.
> The Commission yesterday also adopted regulation
> (http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1110&format=HTML&aged=0&language=EN&guiLanguage=en)
> that automatically approves state aid for jobs and growth that would
> particularly benefit SMBs, help protect the environment and encourage
> more women to start up and develop a new biz.
> The new rules will come into force in the coming weeks allowing
> governments to grant aid in favour of SMBs investing in research,
> innovation, regional development, training, employment and risk
> capital, without first having to seek permission from Brussels.
> State members can cough up to €7.5m (£6m) to SMBs under the new
> regulations.
> Competition Commissioner Neelie Kroes said: "These new rules set out
> a clear framework to allow Member States to grant aid targeted at
> creating jobs, boosting competitiveness and improving the environment
> without the Commission having to get involved at all."
> The UK’s Federation of Small Businesses (FSB) welcomed
> (http://www.fsb.org.uk/news.asp?REC=4674) the EC’s proposals on VAT
> and also called for the British government to relax its tax rules.
> “As the credit crunch bites, some of the first luxuries to go will be
> home improvements, eating out and a trip to the hairdressers, so
> local businesses in these areas will welcome this move. The British
> government must take advantage of these proposals to ensure our high
> street can survive the economic downturn,” said the FSB’s EU
> international affairs chairman Tina Sommer.
> Meanwhile, the British Chambers of Commerce (BCC) today issued a dire
> warning
> (http://www.britishchambers.org.uk/6798219246661929941/alarming-results-highlight-serious-risks-of-uk-recession.html)
> in which it claimed that Blighty is on the brink of a recession and
> added that unemployment could rise by 300,000 by the end of 2009.
> It said the economic outlook for the business sector was "grim and
> ominous" and the downturn could be "longer and nastier" than
> previously expected. The BCC garnered its gloomy findings from a
> survey of 5,000 large and small businesses across the country.
> "Some key results, mostly in services, are at historically low levels
> not seen since the recession of the early-1990s,” said BCC’s economic
> adviser David Kern.
> He called for the treasury to consider the option of early interest
> rate cuts and added: “On its part, the government must alleviate
> acute business concerns over new taxes and regulations, and must
> stand ready to support vulnerable small businesses." ®
> Related stories
> DSGi profit plummets 30% (26 June 2008)
> http://www.channelregister.co.uk/2008/06/26/dsgi_annual_prelims/
> Lenovo throws arms and legs around SMBs (24 June 2008)
> http://www.theregister.co.uk/2008/06/24/lenovo_sl_series_smb/
> Labour isn't working for IT contractors (9 June 2008)
> http://www.theregister.co.uk/2008/06/09/it_contractors_labour_government/
> AMD targets Puma 'Centrino beater' at consumers, SMEs (4 June 2008)
> http://www.theregister.co.uk/2008/06/04/amd_puma_laptop_platform/
> The economy: A big Arab did it and ran away, claims PM (22 May 2008)
> http://www.theregister.co.uk/2008/05/22/gordon_brown_opec_attack/
> Netgear gets a crush on SMBs at Interop (29 April 2008)
> http://www.theregister.co.uk/2008/04/29/netgear_interop_2008/
> EC tries to get on top of carousel fraud (17 March 2008)
> http://www.channelregister.co.uk/2008/03/17/ec_carousel_action/
> UK gov unveils 'Innovation Nation' plans (14 March 2008)
> http://www.theregister.co.uk/2008/03/14/innovation_nation/
> Small biz groups give Darling Budget a wary sniff (14 March 2008)
> http://www.theregister.co.uk/2008/03/14/budget_business_response/
> Chancellor props up SMBs with loans, gov work (12 March 2008)
> http://www.theregister.co.uk/2008/03/12/small_firms_loans_guarantee_funds/
> Darling talks, UK growth slows (12 March 2008)
> http://www.theregister.co.uk/2008/03/12/budget_08/
> CBI calls for major overhaul to UK tax (10 March 2008)
> http://www.theregister.co.uk/2008/03/10/cbi_corporation_tax/
> Microsoft splits Server 2008 for SMB (21 February 2008)
> http://www.channelregister.co.uk/2008/02/21/microsoft_server_2008_details/
> Huge VAT fraud tab eclipses EU's age-old scams (20 February 2008)
> http://www.channelregister.co.uk/2008/02/20/eu_vat_fraud/
> EU waves through downloads tax reform (in 2015) (14 February 2008)
> http://www.theregister.co.uk/2008/02/14/eu_downloads_tax_reform_finalised/
> Credit crunch cranks up pain for SMBs (17 December 2007)
> http://www.theregister.co.uk/2007/12/17/smb_economic_outlook_cbi_2008/
> Poor take-up of e-tax system (4 December 2007)
> http://www.theregister.co.uk/2007/12/04/poor_etax_takeup/
> © Copyright 2008
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