Petition · HM Treasury

Raise the VAT threshold to £125,000

Closed 30 signatures

What the petition asks

We believe SMEs are crippled by VAT paid on turnover, not profits, forcing them to either pass it to customers, risking loss, or cut prices to stay competitive, eating into profits.
We believe raising the threshold to £125,000 will ease the burden on SMEs, allowing them to grow without fear of VAT registration at lower turnover levels. We think the current threshold forces businesses to increase prices, risking competitiveness, or absorb costs, cutting profits. Many SMEs cap growth to avoid VAT, hindering innovation and expansion. We think a higher threshold will reduce administrative burdens, support growth, and align with inflation, benefiting UK SMEs and the economy.

Timeline

10 Mar 2025 Petition opened for signatures
10 Sep 2025 Closed to new signatures

Key facts

Signatures 30
Status Closed
Department HM Treasury
Opened 10 Mar 2025
Closed 10 Sep 2025

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Source: the official petition page. Last checked 1 Sep 2026.