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The following table shows the number of furniture manufacturers that have (a) registered and (b) de-registered for VAT in each year since 1997. The start of year stock of VAT registered businesses is also shown.
Registrations De-registrations Start of year stock 1997 655 610 7,615 1998 655 590 7,660 1999 640 635 7,725 2000 620 595 7,730 2001 540 605 7,755 2002 490 640 7,695 2003 575 605 7,545 2004 495 590 7,515 2005 485 595 7,420 Note: Figures are for SIC code 361, manufacturer of furniture. Source: Small Business Service Analytical Unit, available from www.sbs.gov.uk/vat
VAT registration and de-registration data do not capture all business activity. Businesses are unlikely to be registered if their turnover falls below the compulsory VAT threshold, which has risen in each year since 1997. Similarly, businesses that de-register will not necessarily have closed. Only 1.8 million out of 4.3 million businesses (42 per cent.) were registered for VAT at the start of 2005.