Written Question·Treasury·UIN 56016

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 estimate her Department has made of the potential impact of VAT (a) registration and (b) compliance on 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 means the majority of UK businesses are kept out of the VAT system.