In the UK we also have a VAT tax cliff that further compounds this problem. If your business makes more than £80k you have to add 20% VAT, but before that you d

In the UK we also have a VAT tax cliff that further compounds this problem. If your business makes more than £80k you have to add 20% VAT, but before that you don't. It results in strange scenarios like an accountant recently told a family friend to take more vacations as she was getting too close to the cliff. Makes a lot of small businesses unscalable, but also makes a lot of smaller business ideas viable.