Overview
- Official figures for the year to December 2025 show 683,700 businesses reporting turnover below the registration point, up from 671,000 a year earlier.
- The number of firms with turnover between £90,000 and £150,000 fell to 280,400 from 306,300, indicating a growing cluster just under the cutoff.
- Accountants and advisers report tactics such as shorter opening hours, four‑day weeks, seasonal closures and business splitting to avoid registration.
- Lubbock Fine argues for lifting the limit to about £115,000 to reflect inflation, while the Federation of Small Businesses calls for £100,000.
- The Resolution Foundation proposes lowering the entry point to roughly £30,000 to raise about £2bn annually, and a Commons committee has warned the current cliff edge deters expansion.