Ross Clark Ross Clark

Red tape and big money

Red tape and big money

issue 30 June 2007

There aren’t many people who can say that Gordon Brown has cut their taxes. In fact, as far as I’m aware there are just managers of private equity funds — and me.

The Chancellor’s introduction of the flat-rate VAT scheme in 2002 was so uncharacteristic that it took me a whole year to work out that I could simplify my VAT returns and save several thousand pounds a year. Sadly that simple reform, which allows small businesses to reclaim VAT as a fixed percentage of turnover rather than on each item — and rewards cheapskates like me who run up very low expenses — was to be a one-off.

Otherwise, for small businesses the Blair years have been about just three things: regulation, regulation, regulation. To have been a small businessman in 1997 must have been rather like being a strapping youth in 1914: the wrong time to be alive.

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