On 16 November 2017, HMRC published a research report entitled Behaviours and experiences in relation to VAT registration.
The timing of this report is interesting. On 7 November 2017, the OTS published its report on routes to the simplification of VAT, where consideration of the VAT registration threshold was one of the main points. On 13 November 2017, the House of Commons library issued an updated version of its briefing paper on VAT registration, to include comments on the OTS report. We eagerly await the Chancellor’s comments on the subject in the Budget on 22 November 2017.
The key objectives of the research report were to explore:
The research was conducted with businesses that had registered for VAT in the last two financial years and those that had a turnover below, but close to, the threshold in the last two financial years. It consisted of 2,013 quantitative telephone interviews and 40 follow-up qualitative in-depth interviews.
The key findings were as follows: