Hospitality Industry: VAT
2026-06-21 · Treasury · 11734 · Official question
Question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of current VAT rates on the viability of independent hospitality businesses in England.
Answer
At £90,000, the UK has the second highest registration threshold among all 38 OECD countries, which keeps the majority of businesses, including independent hospitality businesses, outside the VAT system. VAT is a broad-based tax on consumption, and the 20...