Written Question·Treasury·UIN 56014

Small Businesses: VAT

Tabled: 30 May 2025
Answered: 9 June 2025

Question

Rupert Lowe

Restore Britain — Great Yarmouth

To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of the current VAT registration threshold on (small business (a) growth and (b) turnover management.

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 means the majority of UK businesses are kept out of the VAT system.