Petition · past parliament · Department for Work and Pensions

Increase UK VAT threshold to match inflation - it has been £85k since 2017

Closed 48 signatures

What the petition asks

Give small businesses a chance to grow by raising the VAT threshold. Due to soaring costs, some businesses are forced to increase prices and are hitting the VAT threshold and fighting a battle to absorb yet another cost or increase prices again, lowering demand during the rising cost of living.
The VAT threshold has not increased from £85,000 since 2017. Many small businesses are facing massive overhead increases that mean they need to make their premises more efficient and increase sales. Hitting the threshold increases paperwork and accounting fees as well as the actual bill, and many service businesses can’t reclaim much VAT and even on the flat rate scheme it is absorbing potential profit, making some businesses unsustainable. Bring the threshold in line with inflation to give small business a chance.

Timeline

18 Jan 2024 Petition opened for signatures
29 May 2024 Closed to new signatures

Key facts

Signatures 48
Status Closed
Department Department for Work and Pensions
Opened 18 Jan 2024
Closed 29 May 2024

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Source: the official petition page. Last checked 15 Jul 2026.