HC Deb 26 January 2004 vol 417 cc118-9W
Mr. Prisk

To ask the Chancellor of the Exchequer (1) what assessment his Department has made of the change in unreclaimable tax for small businesses following the recent increase in the starting threshold for VAT; [149767]

(2) what assessment his Department has made of the impact on unreclaimable costs for small businesses of the recent increase in the starting threshold for VAT. [149768]

John Healey

With the increase in the VAT threshold to £56,000 at Budget 2003, 2,000 small businesses were removed from compulsory VAT registration. Businesses who wish to continue to be VAT registered may, of course, continue to do so voluntarily.

There is therefore no impact on unreclaimable costs for small businesses.

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