Parliamentary Search

Written question asked by Dan Jarvis (Labour) on Monday, 17 July 2023, in the House of Commons. It was due for an answer on Thursday, 20 July 2023 (named day). It was answered by Victoria Atkins (Conservative) on Thursday, 20 July 2023 on behalf of the Treasury.

Small Businesses: VAT

Question

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential impact of the annual VAT threshold on small business growth.

Answer

Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years. While some businesses have argued that a higher threshold would reduce administrative and financial burdens, others contend that a lower threshold would provide a fairer competitive environment.

In 2018, the Government consulted on how the design of the VAT registration threshold could better incentivise growth. However, there was no clear option for reform.

It was announced at Autumn Budget 2022 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2026.

Secondary information

Type
Written question
Reference
194377
Session
2022-23
Subjects
Small businesses VAT
Link
View this Written question on www.parliament.uk