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Small Businesses: VAT

Asked by Rupert LoweRestore BritainTreasuryTabled Answered 9 June 2025UIN 56016

The question

To ask the Chancellor of the Exchequer, what estimate her Department has made of the potential impact of VAT (a) registration and (b) compliance on small businesses.

Answered by James Murray

At £90,000, the UK has a higher VAT registration threshold 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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