Possible future changes to the VAT registration threshold

In response to the Office of Tax Simplification’s report Value Added Tax: Routes to Simplification, the government will consult on the design of the threshold, and in the meantime will maintain it at the current level of £85,000 for two years from April 2018.

It is possible that in future the UK VAT registration threshold could fall so that it is more in line with the threshold in other European countries. It has been suggested that it could fall to as low as £20,000 which would bring hundreds of thousands of small businesses into the VAT regime.