Small Businesses: VAT

(asked on 1st September 2025) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the current VAT threshold on small business growth.


Answered by
Lord Livermore Portrait
Lord Livermore
Financial Secretary (HM Treasury)
This question was answered on 15th September 2025

With a VAT registration threshold of £90,000, the UK’s threshold is higher than any EU country and the joint highest in the OECD. This means the majority of UK businesses are kept out of the VAT system.

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