3,271

of 5,000 signatures

To Jeremy Hunt MP and Grant Shapps MP

The VAT threshold used to increase with inflation, but it has been stuck at £85,000 since 2017. If it had kept going up, it would be about £103,000 now. This change has led to more businesses having to register for VAT, and others choosing not to grow to avoid crossing the threshold.

The freeze affects around 31,000 businesses with a turnover between £80,000 and £85,000, and around 66,000 businesses with a turnover between £70,000 and £80,000. These businesses might have to pay more VAT but can't easily raise their prices, especially in fields like plumbing, hairdressing, and electrical work.

Petition text

We, the undersigned, request the Government to stop freezing the VAT registration threshold at £85,000 until 2026. This freeze puts more pressure on small businesses and discourages growth.

Registering for VAT also means dealing with complex rules and extra paperwork, which adds more costs for small businesses.

We ask the Government to explore ways to simplify the VAT system, increase the threshold to £100,000 by 2024 and learn from other countries with lower VAT thresholds. Let's support small businesses by encouraging growth and making the VAT process easier for them.

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Help Small Businesses: End the VAT Threshold Freeze

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