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UK Considers Major Change to VAT Threshold: What's Next?

9/5/2025

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Summary

Story summary

The UK government is reviewing the VAT registration threshold, currently set at £90,000.
Proposed changes include raising it to £100,000 or lowering it to £30,000.
Business groups support a higher threshold for growth, while a lower threshold may boost tax revenue but strain small traders.
Chancellor Reeves' decision in the Autumn Budget will affect small business growth and fiscal policy.

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Story summary

The UK government is reviewing the VAT registration threshold, currently set at £90,000.
Proposed changes include raising it to £100,000 or lowering it to £30,000.
Business groups support a higher threshold for growth, while a lower threshold may boost tax revenue but strain small traders.
Chancellor Reeves' decision in the Autumn Budget will affect small business growth and fiscal policy.