Small Businesses: VAT
Commons · Question 56016 · Tabled 30 May 2025 · Treasury · Official record
Answered 9 Jun 2025
Question
Asked by Rupert Lowe
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
Answered by James Murray, 9 Jun 2025
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.