The UK government has increased the VAT registration and deregistration thresholds from April 1, 2024, to ease the burden on entrepreneurs and SMEs. The VAT registration threshold has been raised to £90,000, allowing businesses with a turnover below this amount to not register for VAT. The deregistration threshold has also increased to £88,000, enabling businesses to remain registered without constant deregistration and re-registration. For businesses in Northern Ireland, the thresholds for acquisitions have also increased to £90,000. With this change, the UK now has the joint-highest VAT registration threshold in the OECD, reducing the administrative and financial burdens for small businesses. It is estimated that approximately 28,000 fewer micro-businesses will need to be VAT-registered in the 2024-2025 fiscal year, resulting in an overall administrative burden reduction of £5 million per year.
Source VATai
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