Following changes announced in the UK's Spring Budget Statement, the VAT registration threshold for small businesses is set to be increased.

Secondary legislation will amend the Value Added Tax Act 1994 to increase the VAT registration and deregistration thresholds. As of 1 April 2024, the level of taxable turnover above which businesses have to register for VAT will increase from £85,000 to £90,000.

Commenting on the measure, Chancellor of the Exchequer Jeremy Hunt said it would 'bring tens of thousands of businesses out of paying VAT altogether and encourage many more to invest and grow'.