Small Businesses: VAT
(asked on 15th July 2022) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of temporarily increasing the VAT taxable turnover threshold from £85,000 to help small businesses with the rise in the cost of living.
This question was answered on 25th July 2022
The UK has the highest VAT registration threshold in the OECD and as compared to EU Member States at £85,000. This keeps the majority of UK businesses out of VAT altogether.
Whilst the Government keeps all taxes under review, it was announced at Budget 2021 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2024.