What were the total VAT receipts for the UK in 2023/2024?

The total VAT receipts for 2023/2024 were GBP 169 billion, representing a GBP 9 billion increase compared to the previous financial year, which equates to a 6% growth.

Which sector contributes the most to VAT receipts in the UK?

The Wholesale and Retail sector contributes the most, representing 21% of all VAT-registered taxable persons.

How did the number of VAT-registered businesses change in 2023/2024?

The number of VAT-registered businesses decreased by 213,840, with the Transportation and Storage sector experiencing the most significant decline at 23%.

What percentage of VAT-registered taxable persons are incorporated companies?

Incorporated companies make up 76% of all VAT-registered taxable persons, with sole proprietors and partnerships together accounting for an additional 22%.

What is the significance of the 2024 VAT registration threshold?

The 2024 VAT registration threshold could have a significant impact on the number of VAT-registered businesses, with its effects expected to be reflected in the next year’s report.

Why did the Wholesale and Retail sector experience a decrease in VAT-registered businesses?

The Wholesale and Retail sector saw a 12% decline in VAT-registered businesses, the largest year-on-year change, due to various economic and regulatory factors that are detailed in the report.

HMRC Annual VAT Statistics 2024: Key Insights on UK Tax Trends

As the end of 2024 approaches, many governments are discussing and adopting their national budgets for the following year. However, the year's end usually brings interesting reports that give insights into markets, economies, and policy results.

One of those reports is the annual VAT statistics report issued by HMRC, the UK's taxation governing body. This report highlights some of the most relevant VAT data.

UK's VAT in Numbers

The annual UK statistics report provides insights into the amounts and numbers relating to VAT receipts, population, and liabilities. Total VAT receipts for 2023/2024 were GBP 169 billion, an increase of GBP 9 billion compared to 2022/2023 and a 6% increase over the previous financial year.

The largest sector with the most impact on VAT is the Wholesale and Retail sector, which includes 21% of all VAT-registered taxable persons. The following sectors are the Construction and Professional, scientific, and technical activities sectors.

However, the number of VAT-registered businesses decreased by 213,840. Even the Wholesale and Retail sector felt a fall in VAT-registered taxable persons by 12%, which is the most significant year-on-year change in numbers. Nevertheless, the most significant change in number was in the Transportation and Storage sector, which experienced a 23% decrease.

As expected, the most common business type is incorporated companies, which constitute 76% of all VAT-registered taxable persons. They are followed by sole proprietorships and partnerships. More precisely, incorporated companies, sole proprietors, and partnerships represent 98% of the so-called VAT population.

Conclusion

The UK's annual VAT statistical reports showed that even though there are fewer VAT-registered taxable persons, the overall value of VAT increased. The leading sectors are wholesale and retail, which is not a surprise. Since 2024 marked the year when a new VAT registration threshold was introduced, the next year's VAT statistical results will show the impact of that decision on the UK VAT landscape.

Source: HMRC