Sharp Decline in VAT Registrations Indicates Economic Challenges in the UK

• Number of UK businesses registering for VAT and PAYE dropped by over 40,000
• Possible reasons for the drop include COVID fallout, cost of living crises, Brexit, HMRC slow processing, and HMRC fraudulent registrations crackdown
• This is the first drop in registrations since 2011
• Current number of registrations is 2.7 million
• Sole proprietors and small businesses are most likely to deregister
• Transport and storage, IT, and the sciences were the most negatively affected trade sectors

Source: deeksvat.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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