Firms keen on VAT reduction in 2013, survey finds

28th January 2013 | News

UK businesses are keen to see a reduction in the rate of Value-Added Tax (VAT) to help with economic growth over the next 12 months.

That is according to a new survey published by Interim Partners, cited by City AM, which shows more than two-thirds of senior managers and directors want ministers to reduce the levy.

This compares to 56 per cent who said the same this time last year, suggesting the issue is becoming increasingly important to firms.

With 88 per cent against an increase in interest rates and 57 per cent opposed to additional quantitative easing, Interim Partners' Managing Director Doug Baird told the news provider: "The support for continued low interest rates has increased as the economy has continued to struggle.

"However, there appears to be growing concern about the impact of QE - many senior managers do not see QE as a long-term solution to the UK economy's problems."

It comes after HMRC warned firms that fail to submit their VAT returns on time that their tax affairs will come under greater scrutiny in the coming months.

Posted by Thomas Fletcher