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Written question asked by Angus MacDonald (Liberal Democrat) on Friday, 10 April 2026, in the House of Commons. It was due for an answer on Tuesday, 14 April 2026. It was answered by Dan Tomlinson (Labour) on Monday, 20 April 2026 on behalf of the Treasury.


Small Businesses: VAT

Question

To ask the Chancellor of the Exchequer, pursuant to the Answer of 30 March 2026 to Question 122630 on Business: VAT, whether her Department has made an assessment on the effect that inflation has had on small business' ability to stay under the VAT threshold over the past decade.

Answer

At £90,000, the UK has a higher VAT registration threshold than any EU country and one of the highest in the OECD. This means the majority of UK businesses are not in the VAT system, reducing administrative burdens for small businesses. The government regularly assesses the level of the threshold taking into account impacts on small businesses, the economy as a whole, and tax revenues. Any changes would be made at a fiscal event, taking into account the position of the overall public finances.


Secondary information

Type
Written question
Reference
126126
Session
2024-26
Related items
Business: VAT
Monday, 30 March 2026
Written questions
House of Commons
Subjects
Inflation Small businesses VAT
Link
View this Written question on www.parliament.uk