IGA welcomes uplift in VAT threshold
The Independent Garage Association (IGA) has welcomed the news that the VAT threshold for small businesses has been raised from £85,000 to £90,000 from 1 April.
This is expected to free nearly 30,000 small businesses from paying VAT.
Meanwhile, the small business multiplier for business rates has also been frozen for a fourth consecutive year as part of a £4.3bn business rates support package announced in the Autumn Statement.
Stuart James, IGA chief executive, said: “The increase in the VAT registration threshold from £85,000 to £90,000 is welcomed as it will provide relief to 28,000 small businesses, allowing them to invest more in their operations and expand their enterprises. Additionally, the freeze on the small business rates multiplier for the fourth consecutive year is particularly welcomed as it will safeguard over one million properties from higher bills, contributing to financial stability and security for many garage owners.
“As an association representing the independent garages sector, we understand small enterprises’ challenges, especially given current economic uncertainties. These measures not only alleviate some of the financial burdens but also reaffirm the government’s commitment to supporting the backbone of our economy.
“We’re pleased to see the government recognise small businesses’ vital role in driving economic growth. These initiatives will undoubtedly provide much-needed relief to our members and empower them to navigate these challenging times more confidently.”
