MP calls for changes to be made to VAT threshold following concerns raised by local tourism businesses

Local MP Tim Farron has seen for himself some of the key issues facing local tourist business during a visit to Oldfield House Bed & Breakfast in Windermere.

The MP joined owners Paul & Marion Want to 'muck in' with preparing breakfast and cleaning rooms on Saturday morning. During his visit Tim discussed some of the key issues facing the business - in particular the impact of the VAT threshold on small businesses.

Tim said: "The visit on Saturday morning was a real eye-opener. I was especially surprised that businesses like Oldfield House turn down thousands of pounds worth of business a year because of the way the VAT threshold works."

The VAT threshold works on an 'all or nothing' basis. As soon as a business reaches the £65,000 threshold it has to start paying VAT based on its entire turnover overnight - causing huge financial problems in a sector where it is difficult to put up prices by large amounts.

Tim continued: "It is simply daft that the tax system produces such a disincentive for small businesses to grow. We need to look at ways at removing this false ceiling on turnover of small businesses."