Small Businesses: VAT

(asked on 8th September 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the potential impact of the VAT registration threshold on the net revenue growth of SMEs.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 17th September 2026

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are not in the VAT system at all.

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