Written Question·Treasury·UIN 61523

Small Businesses: Taxation

Tabled: 20 June 2025
Answered: 26 June 2025

Question

Helen Grant

ConservativeMaidstone and Malling

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing the taxable turnover SMEs can earn in a12-month period before registering for VAT.

Answer

James Murray
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.