Small Businesses: VAT
The question
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of small businesses that have limited their (a) turnover and (b) expansion plans to avoid exceeding the VAT threshold.
Answered by Dan Tomlinson
With a VAT registration threshold of £90,000, the UK’s threshold is higher than any EU country and the joint highest in the OECD.
The Government’s approach to the VAT threshold aims to balance potential impacts on small businesses, including their growth and financial sustainability, the economy as a whole, and tax revenues.
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