The responsibility for personal taxation lies firmly with the individual, particularly since the introduction of self-assessment, and should be left to the individual. Small businesses, particularly in the service sector, and just over the VAT registration level, have to compete with unregistered businesses in the same sector. To remain competitive, they have to absorb part of the VAT, which is a serious drain on their profits. To overcome this inequality and to overcome avoidance, all businesses should be registered for VAT, with the proviso that they get the assistance mentioned above. It should be abolished.
Taxation is far too complex anyway.
A business expands by reinvesting profits in itself. It is in the interest of the Treasury that business should expand and increase the gross domestic profit. Any profits that are ploughed back into the business should therefore be given tax relief, including those that are used to increase stock levels. Information One of the most difficult things that the management of a business has to do is to keep abreast of all the current legal requirements affecting the business and of all the sources of assistance that are available from government and others. The Department of Trade would be performing a useful service by producing a quarterly summary of this information.