Small Businesses: VAT

(asked on 30th May 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate her Department has made of the potential impact of VAT (a) registration and (b) compliance on small businesses.


Answered by
James Murray Portrait
James Murray
Chief Secretary to the Treasury
This question was answered on 9th June 2025

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 kept out of the VAT system.

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