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VAT: Essex

Volume 486: debated on Thursday 15 January 2009

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform how many businesses were registered for VAT in (a) Castle Point constituency and (b) Essex in each of the last five years. (243678)

The number of businesses registered for VAT in Castle Point constituency and in Essex for the past five years is shown in the following table.

VAT-registered businesses at start of year

Castle Point constituency

Essex

2004

2,440

45,460

2005

2,475

46,430

2006

2,565

47,580

2007

2,605

48,485

2008

2,685

49,710

Source:

BERR National Statistics publication “Business start-ups and closures: VAT registrations and de-registrations 2007” available at:

http://stats.berr.gov.uk/ed/vat/index. htm

The number of VAT-registered businesses in Castle Point constituency rose from 2,440 at the start of 2004 to 2,685 at the start of 2008—a rise of 10 per cent., compared with a rise of 9 per cent. in both Essex and across the whole of the UK.

VAT registrations do not capture all business activity. Businesses are unlikely to be registered if they fall below the compulsory VAT threshold, which was £64,000 at the start of 2007. Only 1.96 million out of 4.7 million UK enterprises (42 per cent.) were registered for VAT at the start of 2007.