Treasury written question – answered on 14th January 2022.

Alert me about debates like this

Photo of David Duguid David Duguid Conservative, Banff and Buchan

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of increasing the £150,000 threshold to the VAT Flat Rate Scheme in the context of increased costs faced by businesses during the recovery from the covid-19 pandemic.

Photo of Lucy Frazer Lucy Frazer The Financial Secretary to the Treasury

The VAT Flat Rate Scheme was introduced in 2002 as an administrative simplification scheme for small businesses. All taxes are kept under review, but there are no current plans to change the entry threshold for the Flat Rate Scheme.

The Government has made a comprehensive package of support available, worth billions, to a wide range of businesses that have been affected by the COVID-19 pandemic. This includes extensions to the reduced rate of VAT for tourism and hospitality, the furlough scheme, extensions to the COVID-19 loan schemes, grant support, a business rates holiday for all retail, hospitality, and leisure business properties, mortgage holidays, enhanced Time to Pay for taxes, and VAT deferrals.

Does this answer the above question?

Yes2 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.