Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to review the £85,000 VAT registration threshold.

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.

Any change to the threshold would have potential impacts on small businesses, the economy as a whole, and tax revenues, which the Government would need to consider carefully. The Government keeps all taxes under review and any changes are announced at fiscal events.