Written Question·Treasury·UIN 120688

Charities: VAT

Tabled: 13 March 2026
Answered: 23 March 2026

Question

Jess Brown-Fuller

Liberal DemocratChichester

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of fiscal drag on the number of charities expected to become liable for VAT registration over the next five years.

Answer

Dan Tomlinson
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. VAT is a broad-based tax on consumption. Once an organisation’s ta...

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