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Written question asked by Angus MacDonald (Liberal Democrat) on Friday, 20 March 2026, in the House of Commons. It was due for an answer on Tuesday, 24 March 2026. It was answered by Dan Tomlinson (Labour) on Monday, 30 March 2026 on behalf of the Treasury.


Business: VAT

Question

To ask the Chancellor of the Exchequer, what comparative assessment her Department has made of the (a) VAT Registration Threshold and (b) rate of inflation between 2014 and 2026.

Answer

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This reflects the Government’s approach to balance the impacts on small businesses, with the needs of the wider economy and the public finances. Such a comparatively high threshold means the majority of UK businesses are not in the VAT system at all, reducing administrative burdens and supporting growth.


Secondary information

Type
Written question
Reference
122630
Session
2024-26
Related items
Small Businesses: VAT
Monday, 20 April 2026
Written questions
House of Commons
Subjects
Business Inflation Registration VAT Tax thresholds
Link
View this Written question on www.parliament.uk