Measure

VAT registration and deregistration thresholds

The measure

The VAT registration and deregistration thresholds will remain at £85,000 and £83,000 respectively for a further two years from 1 April 2024.

 

Who will be affected?

Businesses that are close to the VAT registration threshold, who may in future find themselves over the threshold and required to register for VAT, especially in light of the current inflationary environment.

 

When will the measure come into effect?

The threshold will remain frozen until 31 March 2026.

Our view

The registration threshold was previously frozen until 31 March 2024. This measure is likely to mean that more businesses will be required to register for VAT. However the UK’s threshold remains high relative to many other countries with a VAT/GST system.