Rachel Reeves plots raid on small businesses with £2billion VAT hike in autumn Budget – as threshold set to be lowered by TWO-THIRDS

Treasury, Rachel Reeves is trying to balance the books in the autumn budget, while small businesses are considering a tax raid of 2 billion pounds.

Authorities look at suggestions to reduce the threshold of small businesses and single traders to register for VAT.

The idea that has been pushed by the Treasury for years is one of the proposals of ‘dust’ while trying to fill a black hole in public financing, which economists say that it could be a total of 50 billion £.

Insiders yesterday, this week after the 10 shakes of Sir Keir Starmer as a special secretary of the chancellor by the new budget Supremo, Torsten Bell and Treasury Tax Chief of York-Smith warned.

In accordance with the existing rules, businesses do not have to register for VAT until they reach £ 90,000.

Mr. Bell, previously supporting the calls to reduce the threshold to £ 30,000, dragging tens of thousands of small companies and single traders.

Business leaders warned that this movement would be a disaster, the costs and bureaucracy on entrepreneurs.

The Federation of Small Businesses is lobbying to raise the threshold to £ 100,000.

Insiders warned yesterday that the idea was supported by Supremo Torsten Bell, the new budget of the chancellor (depicted last month)

They also warned that Sir Keir was supported by the Treasury Tax Chief Dan York-Smith (in the picture), who continued to take over as a special secretary of Starmer.

Group Policy Chief Tina Mackenzie said: ‘The VAT threshold should be upgraded to £ 100,000 to unlock the economic growth that we all need desperately.

‘A higher threshold encourages thousands of small companies to expand, increases tax purchases and does not provide more work and opportunity.’

However, some economists report that the existing threshold encourages companies to put their turnover under the border, and some traders have received long holidays to avoid violating.

The insiders say that the arrival of Mr. York-Smith, approaching 10, increases the likelihood of the pressure.

He is the Head of Tax and Welfare Policy in the Treasury and is responsible for the ‘score card’ that provides the collection of budget numbers.

A Whitehall source told Daily Mail that Mr. York-Smith wanted the VAT threshold in small enterprises to be significantly reduced in previous budgets.

In addition, it is said that he has sued to receive national insurance for retirees and to offer road pricing for electric vehicles.

“He’s a bright man from him, and he can have a good appointment, but he loves his taxes, Sarı said Source.

The idea that has been pushed by the Treasury for years is among the proposals of a series of tax collections that were ‘dusting’ while trying to fill a black hole in public financing (depicted in May).

‘With O and Torsten, you will have two super smart men who know how the system works, and there will be other changes they want for years.

‘The question is who will use the political judgment to prevent another winter fuel style mistakes that must be reversed.’

The Treasury refused to comment on ‘speculation’ in front of the budget.

A treasure spokesman said: ‘The best way to strengthen public finances is to enlarge the economy – which is our focus.’