What the Budget means to me – Simon Miller, in-toto Kitchens
March 12, 2015
Every year the chancellor promises us that the tax system is going to be made simpler, but every year I’m left slightly disappointed.
For a small business like ours, the amount of red tape we encounter on a daily basis can be very obstructive. It gets in the way of growth.
With the admin involved in tax credits and having to deduct tax from payments to subcontractors, it sometimes feels like you’re doing the tax man’s job for him. For a business with five employees, it shouldn’t be so complicated.
On the flip side, I must give the government some credit for getting the economy back on track. Things have got better in the last couple of years and recently I’ve noticed people are making quicker purchasing decisions. For a big ticket item like a new kitchen it was three to six months, or even longer. Now it’s within three months.
Generally, I think the recession has made people go back to buying things the way their parents and grandparents used to, by actually saving up for it and only making the commitment to spend when they have the money in place. A sign of this is that more of our customers are choosing to pay by bank transfer, rather than on a credit card.
What I’d really like to see in this budget is a reduction in VAT. It would knock a few thousand pounds off the cost of a new kitchen. Customers don’t always realise that such a big portion of the price tag is tax.
Maybe it would be a case of robbing Peter to pay Paul, but by lowering the rate of VAT by between 2.5% and 5%, I think the economy would reap the rewards of greater consumer confidence.
Simon Miller is the owner of two in-toto Kitchens franchises in Southport, Merseyside, and Clitheroe, Lancashire. He runs the businesses with his wife Jane.