To ask the Chancellor of the Exchequer if he will make an assessment of the effects on small and medium-sized enterprises of increasing the value added tax registration threshold to £200,000; and if he will make a statement. (305762)

The UK has one of the highest VAT registration thresholds in the European Union. Under existing agreements any increase is limited to maintaining the value of the threshold in real terms.

Changing the registration threshold to £200,000 would have significant effects on competition between registered and unregistered businesses, on burdens on businesses and HM Revenue and Customs and on revenues.