Written Question·Treasury·UIN 48799

Small Businesses: VAT

Tabled: 28 April 2025
Answered: 6 May 2025
Named Day

Question

Mr Peter Bedford

ConservativeMid Leicestershire

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of increasing the VAT registration threshold on levels of growth of small and medium-sized 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.