Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will review the level of existing VAT thresholds for small businesses.

The UK has chosen to maintain a high VAT registration threshold, and it is currently the highest in the EU (at £82,000 from 1 April 2015). We believe that the UK’s current registration threshold achieves a reasonable balance between competing interests and reduces the administrative burden on the smallest businesses.

The Government may not increase this threshold further, aside from maintaining its value in line with inflation, without the consent of the European Commission and the unanimous agreement of all EU Member States.