VAT registration threshold
The Government is considering the possibility of a lower VAT registration threshold from 1 April 2020. This affects many businesses now. When making business decisions it is not safe to assume that the current VAT registration threshold of £85,000 will always be available. There is a possibility that the threshold may reduce significantly.
The level of the VAT registration threshold is of particular interest to businesses that provide services to members of the public. Examples include bed and breakfast operators, cafes, and businesses providing home improvement, repair, and maintenance services. Such businesses may incur a low amount of VAT bearing costs relative to their income and, whether they are registered for VAT or not, often have to compete with small businesses that are not registered for VAT.
The November 2017 Autumn Statement included an explanation that the VAT registration threshold would be £85,000 until 31 March 2020, and that the Government would consult on the design of the threshold during the period to 31 March 2020.
The Government published a ‘call for evidence’ document regarding the VAT registration threshold in March 2018, and it is hoped that many people interested in the topic will respond by the 5 June 2018 deadline. A link to the document is included below:
The ‘call for evidence’ document includes a link to a SurveyMonkey questionnaire which has been estimated will take approximately 7 minutes to complete.
If you would like your voice to be heard, please respond to the survey by 5 June 2018.