The headline change for VAT is a long awaited (modest) increase in the annual VAT registration threshold from £85,000 to £90,000 from 1 April 2024.
Whilst this news may be welcome for businesses trading just below the edge of the current threshold, it is notable that this level has remained frozen for seven years. With ongoing elevated inflation in the UK, this may be seen as a meagre bone for small non-VAT registered businesses.
The VAT deregistration threshold will also rise from £83,000 to £88,000. The effect of this is that the changes will not enable many businesses currently exceeding the existing threshold to deregister for VAT.
