Small Businesses: VAT

(asked on 28th April 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of increasing the VAT registration threshold on levels of growth of small and medium-sized businesses.


Answered by
James Murray Portrait
James Murray
Exchequer Secretary (HM Treasury)
This question was answered on 6th May 2025

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.

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