VAT registration threshold call for evidence – ATT and CIOT members’ survey

If the taxable turnover of a business in a 12-month period exceeds the VAT registration threshold that business must register and account for VAT. The UK VAT threshold is currently £85,000 until March 2020, the highest in the EU and the OECD.

A report last year by the Office of Tax Simplification (OTS) (available here) set out concerns that the current level of the VAT threshold and its cliff edge nature distort taxpayer behaviour. In particular, small businesses may choose to keep their turnover below the VAT threshold, either by legitimately limiting their expansion or illegally under-recording their takings.

A call for evidence (available here) was published by the Government on 13 March to explore whether the design of the VAT threshold could better incentivise growth.

This survey invites responses from agents with experience of advising clients on their VAT affairs. If you are not an agent but would still like to complete the survey (or just relevant questions) please indicate your status in question 1. If your clients would like to respond to a short survey for small businesses, HM Treasury has published an online survey for small businesses here.

The objectives are to explore:

  • How the current threshold might affect business growth.
  • The administrative, financial and competitive burdens created by the VAT regime at the point of registration, and why businesses might manage their turnover to avoid registering.
  • Possible policy solutions. There is a particular interest from HMT in views on the proposed smoothing mechanisms.

The results of the survey will be used to inform our response to the call for evidence. You only need to answer those questions which apply to you. You do not have to answer all the questions.

Thank you for taking part, the survey should take around 15 minutes to complete.

Click here for the survey

Please note that all survey responses are anonymous and cannot be traced back to the originator.

The closing date for responses to this survey is 10 May 2018.

 

 

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