Question to the HM Treasury:

To ask His Majesty's Government what plans they have to increase the threshold for compulsory registration for VAT; and what plans they have to reinstate the policy of annually updating the threshold in line with inflation.

Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years.

In 2018, the Government consulted on how the design of the VAT registration threshold could better incentivise growth. However, there was no clear option for reform.

While the Government keeps all taxes under review, it was announced at Autumn Budget 2022 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2026.