Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the economy of compliance with VAT regulations for small businesses.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD, at £90,000. This keeps the majority of small businesses out of the VAT regime altogether.