Chancellor expected to freeze threshold at £85,000, forcing thousands more to pay tax for the first time
Jeremy Hunt is plotting a stealth tax raid on small businesses that will force thousands more to pay VAT as he scrambles to balance the country’s books.
The Chancellor is preparing to hold the threshold at which businesses must register to pay VAT at £85,000 of turnover until 2026, instead of raising it in line with inflation.
The plans mean that thousands more businesses will pay the tax for the first time as their turnover increases in line with rising prices.
That threshold has already been frozen until 2024, but Mr Hunt and Rishi Sunak, the Prime Minister, are considering extending this by another two years.