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As announced in the Spring Budget, the VAT registration and deregistration thresholds will increase from 1 April 2024.
The 12-month taxable turnover threshold which determines whether a person must be registered for VAT will increase from £85,000 to £90,000. The 12-month taxable turnover threshold for deregistration will increase from £83,000 to £88,000.
For Northern Ireland, the registration and deregistration thresholds for acquisitions will increase from £85,000 to £90,000.
Neil Warren, independent VAT consultant, said: ‘VAT is a tax that is long overdue for reform but yet again, the chancellor has failed to make any radical announcements to make it either simpler or fairer. The £5,000 increase in the registration threshold is a token effort to be seen to be doing something about VAT - however, the practical reality is that it will have a minimal impact in the business world.’
