Autumn Statement 2016: New sales tax could squeeze firms run by JAMsComments Off on Autumn Statement 2016: New sales tax could squeeze firms run by JAMs
One-man band companies like hairdressers and window cleaners will be squeezed by a new sales tax they have to charge customers.
Companies with minimal costs will have to charge 16.5% as value added tax for their services, meaning they either have to put up prices or earn less.
The move is at odds with the government’s pledge to help those dubbed the Jams or just about managing.
“Many of the people affected by this will be the just about managing. It’s hard to see how this policy is helping them,” Harwood Hutton’s tax expert Cormac Marum said.
The move is due to bring the Treasury some £500m extra in tax receipts, according to forecasts.