Written Question·Treasury·UIN 24329

Small Businesses: VAT

Tabled: 15 January 2025
Answered: 22 January 2025

Question

Susan Murray

Liberal DemocratMid Dunbartonshire

To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of the VAT (a) threshold and (b) rates on the (i) growth and (ii) financial sustainability of small businesses.

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. The Government’s approach to the VAT threshold and applicable rates a...

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