(just in case you never guessed)

@AlexSelbyB Lol is it 85000? 😂

@the_yushi ✔️

@AlexSelbyB @ajwillshire Is this like being unsurprised by how many French companies there are with 49 employees…

@AllieRenison @ajwillshire Exactement

@AlexSelbyB @RMLLowe Is it possible to guesstimate (I get it depends on profitability too) where turnover needs to get to before it becomes worthwhile growing past the threshold?

@AlexSelbyB My occupation is exempt from VAT but I stop working when I am close to paying higher rate tax - why bother? I’d rather spend the mornings running or swimming ! Enjoying life

@AlexSelbyB I looked at his for a few business, it was practically impossible for them justify taking on an apprentice (unless family member) as required additional turnover hits vat limit. Hence most trades can't be entered unless family already in them.

@AlexSelbyB Oooh this chart took me a while to digest. I assumed the bottom was years: ‘80, ‘85, ‘90

@AlexSelbyB So if I'm a plumber can I start a different company and take new business in that one to avoid my first business going over the threshold? Is that how they do it?

@AlexSelbyB B2b

@AlexSelbyB Pretty accurate. Lots of small businesses sit deliberately below the threshold.

@AlexSelbyB One year I had a got close to the limit, taking on extra work for a few months, but stopped doing that in the Feb so that I wouldn’t go over the limit. I work for large companies (who don’t care) and individuals & small charities who would find someone else if I had to add VAT.

@AlexSelbyB In Canada, there is a similar effect for wages. We had people that refused overtime work after the 2nd or 3rd week of the month, because it would bump them into the next tax 'progressive' bracket. High school labourers could figure this out, but not government bureaucrats....

@AlexSelbyB is there a solution to this?

@AlexSelbyB Is the answer to this (and the French company size probleme, and others) to avoid tax cliff-edges? Wouldn’t surprise me to see an irregular distribution of gross personal incomes that disperses out of the 100k to 120k range.