Really don't see what all the fuss is. Lots of window cleaners are vat registered. We have been for 10 years. No problems. I think it's a good thing to have a totally even playing field for everyone. As with most things it's just the fear of the unknown that worries people.
Yes people will start having to run things more like a proper business. Lots you can do to balance the money back to you, go ltd and do away with n.i and pay less income tax with dividends. Only put your price up by 10%, swallow the other 10% but even that out with claim backs on kit, fuel ect.
As for going collecting more cash, you can't rent or buy a house based on cash or a decent car or holiday. You can't have a decent life based on cash. More will get done by the tax man and vat avoidance is about the worst thing to be hit with.
Yes but the 85k buffer allows people to get things in ace before they take on Vat. They can get systems in place, accountants, get an employee or 2 and generally get themselves sorted and ready to steam into vat with momentum behind them.
If the threshold was refused to say 20k it would mean many who start out from nothing with no money are getting hit almost straight away, they cannot reinvest all they earn back in for growth as vat is turnover based so they are getting g no financial breaks whilst they get things in order. It's making things much harder right from the start, whereas the current threshold allows people to start up.
It's on saying nothing to worry about when your doing 500k turnover already and have already benefitted from the system. It's also on if you've paid your mortgage off and are winding down but for guys just starting it out it's a major kick in the buys that a lot won't or can take on the chin.
The only positive I can see is it will literally force a new business to sink or swim, do or die. Theres no point having a middle ground it will be either earn under 26k or whatever and evade tax and vat or get a job stacking shelves Vs push on right from the start and risk everything to earn enough to cope with the Vat. Being a sole trader earning less than about 60k Year will be completely pointless.