Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the potential effect of the increase in the minimum wage on small businesses operating under the VAT threshold.

The Department has not made an assessment of the interaction between VAT thresholds and the minimum wage.

Businesses are only required to register for VAT when the total value of their taxable supplies of goods and services in the preceding 12 months exceeds the current VAT registration threshold, which was increased to £82,000 with effect from 1 April 2015.