The VAT registration (£85,000) and deregistration (£83,000) thresholds will remain frozen for a further period of two years from 1 April 2022 until 31 March 2024.
It was previously announced in Budget 2018 that the thresholds would remain frozen until April 2022, following a report from the Office of Tax Simplification that discussed the thresholds and a government call for evidence.
Businesses whose value of taxable supplies is close to the VAT registration threshold.
The current thresholds will remain in place until 31 March 2024.
This announcement provides businesses with some certainty, but it will impact smaller businesses who are close to the VAT registration threshold and who may need to register for VAT as their taxable supplies increase. This will be of particular relevance for those businesses who make supplies to end consumers where any obligation to charge VAT may impact on pricing and margins.