Business: VAT
The question
To ask the Chancellor of the Exchequer, how many businesses have a taxable turnover of (a) £85,000-£89,999 and (b) £90,000-£95,000; and if she will make a cost-benefit analysis of the VAT threshold for businesses.
Answered by James Murray
Data on numbers of businesses with turnover either side of the VAT registration threshold have been published by the Office for Budget Responsibility here: Economic and fiscal outlook - March 2023 - Office for Budget Responsibility (obr.uk), see ‘Supporting Documents’, ‘March 2023 Economic and fiscal outlook – charts and tables: Chapter 3’, Chart 3.C. Data on turnover of businesses since the threshold was increased to £90,000 are not yet available.
At £90,000, the UK has a higher VAT registration threshold than any EU Member State and the joint highest in the OECD. The Government keeps all taxes under review and will take decisions across tax and spending at the Budget.
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