UKC

How about some real facts.

As the new Conservative government seeks to portray itself as the party of business, Molly Scott Cato MEP for the Green Party, has launched a stinging attack on its business friendly claims. Citing a five month delay in responding to a query about the impacts of new EU VAT regulations on micro businesses, she accused the government of belittling an issue of vital importance to the viability of small businesses and treating her and her constituents with contempt.

Dr Scott Cato wrote to the former Business Secretary, Vince Cable, last December to highlight the damaging impact new VAT rules are having on small businesses; she was the first elected politician to raise the alarm about this issue. It has taken five months for the government to respond, a delay that Dr Scott Cato believes is politically motivated:

“Many constituents have told me they have been hit hard by these new VAT rules. In the five months it has taken for the government to respond to my concerns, some micro-businesses have become unviable and have ceased trading. The new government is busy painting itself as being on the side of small business while Labour is agonising about whether it is business friendly enough. But delay in responding to these important concerns shows that when Labour and Tories say business they mean corporate transnational business and that in reality they have neglected the small businesses that are the backbone of our communities.”

New VAT rules, introduced in January, were designed to prevent multinational corporations from avoiding tax on digital sales in other countries. However, the rules have had a devastating impact on micro-businesses. The changes mean VAT on digital products sold in the EU is chargeable in the place of purchase rather than the place of supply. This means micro-businesses are obliged to collect VAT from up to 28 different EU states at 75 different rates. Molly Scott Cato was the first politician to take up this issue and has lobbied for a small business exemption at EU and national level.

Last week the European Commission announced plans to include a VAT exemption for small businesses, as called for by Dr Scott Cato, but this will not be introduced until 2016. Molly Scott Cato is highly critical of the failure of the Westminster parties to stand up for a small business threshold when the VAT rules were originally agreed. She said:

“I am deeply concerned that the proposal comes too late for many businesses that have already closed down their digital operations in other countries as a result of poorly thought through legislation. In future I would like to see policy-makers consult fully with the small business community before introducing policies that can so fundamentally affect their viability.”

In reply to The Ice Doctor:

A bit of credit to the original author perhaps?

http://www.dorseteye.com/east/articles/vat-debacle-shows-main-parties-are-a...

Adding plagiarism to your list of sins now.

In reply to The Ice Doctor:

"Dr Scott Cato wrote to the former Business Secretary, Vince Cable, last December to highlight the damaging impact new VAT rules are having on small businesses; she was the first elected politician to raise the alarm about this issue. It has taken five months for the government to respond, a delay that Dr Scott Cato believes is politically motivated"

Eh? Why didn't she just write to the government rather than Vince Cable who, last December, wasn't even an MP, never mind a member of the government?

In reply to The Ice Doctor:

Could you please explain why the delay is "politically motivated". What does that even mean? What political gain do you imagine accrues from being slow to respond to SMEs?

I don't know when the article was written but it seems pretty normal to assume that leaving the EU, a position cemented almost a year ago, would mean that the solution is underway. Leaving the customs union ought to eliminate VAT on supplies made within the EU. And the government is taking that process very seriously. Too seriously for many!!

If anything it appears to me that Ms Scott Cato is the one whose actions are politically motivated. What do you think?

In reply to BnB:

How will leaving the EU help?

In reply to Timmd:

1) Because VAT is not chargeable on supplies made outside the EU. That's the simple bit.

2) The complicated part is that it would not normally be chargeable in cash within the EU. Only in virtual terms by means of complex reporting procedures that I have to follow quarterly as an exporter to the EU. However EU legislation makes digital supples "special" and requires them to be handled differently.

But you can ignore 2) because of 1)!!

In reply to hokkyokusei:


It's clearly an old article (although unfortunately not dated), probably dating to just after the last election; 2016 is clearly some distance in the future at this point. Thus, the complaint was probably made during the coalition, then Vince Cable was the coalition government Business Secretary.

"Last week the European Commission announced plans to include a VAT exemption for small businesses, as called for by Dr Scott Cato, but this will not be introduced until 2016."

In reply to captain paranoia:

Ah, yeah, that makes more sense.

In reply to BnB:


Except that doesn't happen in real life. I reckon 50% of EU businesses I order goods from fail to remove the VAT (I live outside the EU).

In reply to Toerag:

That's not the government's nor the EU's fault is it though? Sounds like sharp practice to me. Do you pay the tax?

In reply to Big Ger:


At least he's not gratuitously unfriendly.....?

In reply to The Ice Doctor:

Your incessant anti-tory posts are getting tedious.

(LibDem voter btw)

In reply to Deadeye:

I've found that one can start to guess what people are posting about, both from their topic titles and the general content of their previous threads, and then decide on whether to click or not. It's a simple approach but it seems to work.

Edit: No wonder the hippies seem to have stopped posting on here. It can seem like a rather sniping forum generally now.

In reply to Timmd:


Hi

Not sure if you're saying that I'm sniping?
I wasn't meaning to, just pointing out that post after post of regurgitation, without any apparent critical thought, and all from a rathe tabloid "Tories are evil" standpoint, is a bit wearing. You're right, I could start to play "guess the content", but perhaps I was giving them the benefit of the doubt?

In reply to Deadeye:


Well said. As a usually (but not exclusively) slightly right of centre voter, I'm both wearied of the endless, politically and economically naive Tory-bashing and also in awe of Postman Pat's stamina in standing almost entirely alone against the mob.

In reply to Deadeye:


I wasn't saying you were sniping. Was more of a general musing on the forums now. Pardon me.