§ Mr. David Porter
To ask the Chancellor of the Exchequer if he will make it his policy to implement a sliding rate of VAT registration threshold limits to reflect the number of employees and partners each business has; and if he will make a statement.
§ Mrs. Gillian Shephard
I have no plans to do so. VAT is a transaction-based tax. The registration threshold is based on the taxable turnover of a business and the United Kingdom Government are constrained by the provisions of the EC sixth directive which requires member states to operate a threshold based upon turnover.