Written Question·Treasury·UIN 86539

Small Businesses: VAT

Tabled: 29 October 2025
Answered: 5 November 2025
Named Day

Question

Freddie van Mierlo

Liberal DemocratHenley and Thame

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of raising the VAT registration threshold from £90,000; and whether she plans to conduct a review of the impact of current thresholds on SMEs.

Answer

Dan Tomlinson
With a VAT registration threshold of £90,000, the UK’s threshold is higher 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. The Government’s approach to the VAT threshold aims ...

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