Small Businesses: VAT
Commons · Question 86539 · Tabled 29 Oct 2025 · Treasury · Official record
Answered 5 Nov 2025
Question
Asked by Freddie van Mierlo
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
Answered by Dan Tomlinson, 5 Nov 2025
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 ...