Make tax for pubs clearer, says BII

06-Sep-2006

 

BII, the professional body for the licensed retail sector, has called for tax measures within the flat rate scheme to be made clearer.

 

The flat rate scheme for small businesses taxes drink sales at 5.5% and food sales at 12%, however if sales of food is greater than drink sales they could face a total tax bill of 12%. The flat rate scheme is available for businesses whose annual taxable turnover (not including VAT) does not exceed £150,000. Many licensees chose to operate under the flat rate scheme and could be stung with a massive bill.

 

In a letter to the Publican Newspaper, John McNamara, BII Chief Executive, wrote, “I am horrified to read that yet again the small business is being stung financially. Licensees who make a success of introducing food into their pubs to help keep their businesses afloat could face a huge tax bill.

 

He added, “This is grossly unfair at a time when pubs are facing the impending smoking ban and will be looking to diversify to continue trading at a viable level. As the professional body for the licensed retail sector, BII heavily opposes such measures.

 

Mr McNamara concluded, “We have a number of members who run pubs not restaurants and have customers who come in for food with their drink, why should they be penalised for offering what their customers want and trying the make a success of their business? Additionally pubs offer a valuable community resource and measures like this just place even more of a challenge and burden on hard working licensees. We want to see pubs flourishing but this is becoming increasingly difficult. I would urge that the tax measures are made clearer with one rate for drink and one for food so licensees can make a sensible business decision.”




Email melanie@bii.org
Contact Melanie Taylor Communications Manager 01276 417863