- UK government increases VAT registration threshold for first time in seven years
- Threshold increases from £85,000 to £90,000 for taxable turnover
- Businesses in Northern Ireland also see threshold increase for EU acquisitions
- HMRC states UK VAT threshold is highest among EU Member States and tied with Switzerland for highest among OECD countries
- Concerns raised about businesses intentionally staying below threshold to avoid VAT
- Graph shows steep drop in number of businesses near threshold, indicating growth suppression
- Compliance hassle and price increases cited as reasons for businesses avoiding VAT registration
- Chancellor Hunt unable to increase threshold beyond £90,000 due to Northern Ireland protocol
Source: vertexinc.com
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.
