Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential effect of changes to eligibility for VAT registration on (a) guest houses and bed and breakfast outlets and (b) other small and medium-sized enterprises.

The UK's VAT registration threshold is currently set at £85,000. Businesses must register for VAT when their turnover is above £85,000. Businesses below the threshold are eligible to register voluntarily if making taxable supplies.

To assess the impact of VAT on small and medium enterprises HM Revenue and Customs commissioned Ipsos MORI to conduct research into their behaviours and experiences around VAT registration. The report was published on 16 November 2017.