VAT

Mr. Francois
To ask the Chancellor of the Exchequer when he expects the European Commission to issue a derogation so that businesses with turnovers of £1.35 million or less will be able to take advantage of more flexible VAT payment options.

Dawn Primarolo
The timetable has not yet been finalised but we expect the European Commission to adopt and issue a proposal shortly. Any subsequent announcement in respect of the turnover limit for entry to the VAT Cash Accounting Scheme will be made separately, as part of the normal Budget process.