Annual UK VAT statistics 2024 to 2025 commentary
Updated 3 December 2025
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1. Headlines
The key points of Value Added Tax (VAT) statistics are:
- ³Ù´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ in the financial year 2024 to 2025 increased by 2% to £171 billion compared to £168 billion in 2023 to 2024
- ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô in 2024 to 2025 was 2,330,400, with 234,000 new registrations and 218,000 de-registrations in-year, resulting in 2,285,900 live traders
- total net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â in 2024 to 2025 was £177 billion
- the Wholesale and Retail sector was the largest contributor to net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (32%) with a total of £57 billion
- traders with an annual turnover of greater than £10 million paid 75% of total net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (£133 billion)
2. About this release
This official statistics publication provides information on VATÌý°ù±ð³¦±ð¾±±è³Ù²õ, ±á´Ç³¾±ðÌýVAT and Import VAT. It also includes ±á´Ç³¾±ðÌýVAT declared on traders’ returns classified by sector, sub-sector and trade group as well as information on VAT registrations, de-registrations and trader population.
VAT is charged when a VAT-registered business sell goods or services to another business or non-business customer. When VAT-registered businesses buy goods or services, they can generally reclaim ³Ù³ó±ðÌýVAT they have paid.
There are three rates of VAT depending on the goods or services the business provides:
- standard: 20%
- reduced: 5%
- zero: 0%
There are also some goods and services that are:
- exempt from VAT
- outside the UKÂ VATÂ system completely
For further information, please go to VATÌý°ù²¹³Ù±ð²õ.
There are three main measures of VATÌý°ù±ð±¹±ð²Ô³Ü±ð:
- on an accruals basis (when ³Ù³ó±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â arose)
- on a declared liability basis (when HMRC is notified of ³Ù³ó±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â)
- on a cash receipts basis (when VAT was paid to HMRC)
This release incorporates the following changes to the tables outlined in ³Ù³ó±ðÌýConsultation on changes to HMRC statistics publications 2025:
- combining tables 3 and 4a into one table (table 3)
- adding a sector level total to table 4b (table 4)
- combining tables 5a1 and 8 (table 5a1)
- removing tables 10a and 10b
- adding total net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â to table 11 (table 9)
As part of a continuous improvement process, the publication as a whole has undergone several changes to enhance the user experience and achieve greater accessibility. HMRC welcomes user engagement to improve the departments National and Official Statistics. You can contact statistics producers via our feedback avenues.
3. VATÌý°ù±ð³¦±ð¾±±è³Ù²õ
°Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ are equal to ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ plus Non-postponed accounting import VATÌý°ù±ð³¦±ð¾±±è³Ù²õ, which is the amount paid to HMRC. °Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ include accounting adjustments to remove penalties and occasional payment errors.
Receipts decreased between March 2020 and June 2020. °Õ³ó±ðÌýVAT payment deferment policy was one of the key drivers of this change. Further reductions in receipts across the 2020 to 2021 financial year can be attributed to economic impacts of the Covid-19 pandemic as well as the temporary reduced rate of 5% for hospitality, holiday accommodation and attractions.
±Ê´Ç²õ³Ù±è´Ç²Ô±ð»åÌýVATÌý²¹³¦³¦´Ç³Ü²Ô³Ù¾±²Ô²µÂ was introduced in January 2021. ±Ê´Ç²õ³Ù±è´Ç²Ô±ð»åÌýVATÌý²¹³¦³¦´Ç³Ü²Ô³Ù¾±²Ô²µ allows traders to declare their Import VAT on their VATÌý°ù±ð³Ù³Ü°ù²Ô rather than paying Import VAT upfront when the goods are imported. Postponed accounting import VATÌý°ù±ð³¦±ð¾±±è³Ù²õ cannot easily be separated out from the ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ. Therefore, from February 2021 the Import VAT figures reported in this bulletin are for Non-postponed accounting import VATÌý´Ç²Ô±ô²â.
³§±ð±ðÌýAnnual UK VAT statistics 2024 to 2025 background and references for changes to Home and Import VAT from 2021 onwards.
Figure 1 shows °Õ´Ç³Ù²¹±ôÌýVAT, ±á´Ç³¾±ðÌýVAT and Import VATÌý°ù±ð³¦±ð¾±±è³Ù²õ over the last 10 financial years. Some notable changes are:
- °Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ for 2024 to 2025 were £171 billion. This was composed of £162 billion of ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ and £9 billion of Non-postponed accounting import VATÌý°ù±ð³¦±ð¾±±è³Ù²õ
- °Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ have increased by £3 billion since 2023 to 2024
- ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ have increased by £3 billion and Non-postponed accounting import VATÌý°ù±ð³¦±ð¾±±è³Ù²õ have decreased by £1 billion since 2023 to 2024
- the changes in °Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ since 2023 to 2024 are a continuation of the increasing trend seen over the past 10 financial years, during which °Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ have increased by £56 billion (49%)
- ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ have been making up an increasing share of °Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ since 2020 to 2021 due to the change in postponed VATÌý²¹³¦³¦´Ç³Ü²Ô³Ù¾±²Ô²µ.
Figure 1: VATÌý°ù±ð³¦±ð¾±±è³Ù²õ for the previous ten financial years to 2024 to 2025.
Table:
| Financial Year | ±á´Ç³¾±ðÌýVAT (£ billion) | Mixed Import VAT* (£ billion) | Non-Postponed Accounting Import VAT (£ billion) | Non-EUÌý±õ³¾±è´Ç°ù³ÙÌýVAT (£ billion) | °Õ´Ç³Ù²¹±ôÌýVAT (£ billion) |
|---|---|---|---|---|---|
| 2015-16 | 89 | 0 | 0 | 26 | 115 |
| 2016-17 | 92 | 0 | 0 | 28 | 120 |
| 2017-18 | 96 | 0 | 0 | 30 | 126 |
| 2018-19 | 100 | 0 | 0 | 33 | 133 |
| 2019-20 | 97 | 0 | 0 | 32 | 130 |
| 2020-21 | 73 | 28 | 0 | 0 | 102 |
| 2021-22 | 141 | 0 | 16 | 0 | 158 |
| 2022-23 | 145 | 0 | 13 | 0 | 158 |
| 2023-24 | 158 | 0 | 10 | 0 | 168 |
| 2024-25 | 162 | 0 | 9 | 0 | 171 |
For the full dataset that accompanies Figure 1 go to Value Added Tax (VAT) tables 2024 to 2025.
Net ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ are equal to ±á´Ç³¾±ðÌýVAT payments made to HMRC by registered taxpayers minus ±á´Ç³¾±ðÌýVAT repayments made from HMRC to taxpayers. Taxpayers make payments to HMRC when their net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â is positive and receive repayments from HMRC when their net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â is negative.
Figure 2 illustrates the following changes in ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ broken down into payment and repayment receipts over the last 10 financial years:
- ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ for 2024 to 2025 were composed of £275 billion of payment receipts and -£113 billion of repayment receipts
- payment receipts increased by £5 billion and repayment receipts increased by £2 billion since 2023 to 2024
- the year-on-year increases in payment receipts have been larger since 2020 to 2021, reflecting the increasing share of °Õ´Ç³Ù²¹±ôÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ which are ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ
- payment receipts have increased by £109 billion (65%) and repayment receipts have increased by £36 billion (47%) during the past 10 financial years
Figure 2:Â VATÂ payment and repayment receipts for the previous ten financial years to 2024 to 2025.
Table:
| Financial Year | Payments (£ billion) | Repayments (£ billion) | Net ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ (£ billion) |
|---|---|---|---|
| 2015-16 | 166 | -77 | 89 |
| 2016-17 | 173 | -81 | 92 |
| 2017-18 | 181 | -85 | 96 |
| 2018-19 | 189 | -89 | 100 |
| 2019-20 | 189 | -92 | 97 |
| 2020-21 | 162 | -88 | 73 |
| 2021-22 | 238 | -96 | 141 |
| 2022-23 | 252 | -107 | 145 |
| 2023-24 | 270 | -112 | 158 |
| 2024-25 | 275 | -113 | 162 |
4. VATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô
VATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô figures refer to the active trader population during the year. Active traders are VAT registered traders who were live at 31 March of the financial year or who had submitted a non-nil return during the financial year.
Businesses need to register for VAT when their turnover of VAT taxable goods and services is over ³Ù³ó±ðÌýVAT registration threshold.; businesses below ³Ù³ó±ðÌýVAT registration threshold may also choose to voluntarily register.
4.1 Overview
Figure 3 illustrates the following changes in ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô over the last 10 financial years:
- ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô consisted of 2,330,400 traders in 2024 to 2025, 11,400 (+0%) higher than in 2023 to 2024
- ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô is now just 112,500 traders (5%) greater than 10 years ago following decreases in ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô between financial years 2021 to 2022 and 2023 to 2024.
Figure 3: °Õ´Ç³Ù²¹±ôÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô over the last 10 years to 2024 to 2025.
Table:
| Financial Year | VATÌý±Ê´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô |
|---|---|
| 2015-16 | 2,217,800 |
| 2016-17 | 2,308,600 |
| 2017-18 | 2,331,700 |
| 2018-19 | 2,352,200 |
| 2019-20 | 2,454,900 |
| 2020-21 | 2,481,300 |
| 2021-22 | 2,554,500 |
| 2022-23 | 2,392,800 |
| 2023-24 | 2,319,000 |
| 2024-25 | 2,330,400 |
4.2 Sector
Figure 4 illustrates ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô from the top 10 trade sectors for the financial year ending March 2025:
- the largest sector in ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô was Wholesale and Retail with 511,300 traders, 22% of the ³Ù´Ç³Ù²¹±ôÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô
- the Construction sector (349,600 traders) and Professional, Scientific and Technical Activities sector (336,200 traders) were also large contributors to ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô
Figure 4: Contribution to ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô from the top 10 trade sectors for the financial year ending March 2025.
Table:
| Sector | Number of Traders |
|---|---|
| Wholesale and Retail | 511,300 |
| Construction | 349,600 |
| Professional, Scientific and Technical Activities | 336,200 |
| Information and Communications | 177,000 |
| Administrative and Support Service Activities | 146,100 |
| Agriculture, Forestry and Fishing | 138,900 |
| Accommodation and Food Service Activities | 128,500 |
| Manufacturing | 128,200 |
| Real Estate Activities | 112,800 |
| Transportation and Storage | 98,600 |
Figure 5 illustrates the 10 sectors which saw the largest changes in VATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô during the financial year ending March 2025:
- ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô in the Wholesale and Retail sector increased by 9,500 traders (+2%), the largest year-on-year change in the number of traders
- ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô in the Transportation and Storage sector decreased by 4,700 traders (-5%), the largest year-on-year decrease in the number of traders
Figure 5: Year-on-year change in VATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô of the top 10 contributing sectors for the financial year ending March 2025.
Table:
| Sector | Year on Year Change in VATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô |
|---|---|
| Wholesale and Retail | 9,500 |
| Real Estate Activities | 2,800 |
| Education | 1,700 |
| Construction | 1,700 |
| Other Service Activities | 1,600 |
| Arts, Entertainment and Recreation | 1,200 |
| Accommodation and Food Service Activities | -1,000 |
| Manufacturing | -1,600 |
| Information and Communications | -1,600 |
| Transportation and Storage | -4,700 |
4.3 Business type
Figure 6 illustrates ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô for the financial year ending March 2025 broken down by business type:
- the most common business type was incorporated companies which consisted of 1,766,000 traders (76% of ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô)
- the vast majority (98%) of traders were either incorporated companies, sole proprietors or partnerships
Figure 6: VATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô by business type for the financial year ending March 2025.
Table:
| Business Type | Number of Traders |
|---|---|
| Incorporated company | 1,766,000 |
| Sole proprietor | 334,100 |
| Partnership | 181,300 |
| Non profit making body or mutual association (other than a corporate body) | 42,900 |
| Public corporation or nationalised industry | 2,200 |
| Local authority | 2,000 |
| Unknown | 1,800 |
4.4 Turnover band
Before financial year 2022 to 2023, traders with a negative turnover were classified as having an unknown turnover. For financial year 2022 to 2023 onwards, traders with a negative turnover have been included in the ‘Negative or £0’ turnover band. It is not feasible to implement this improvement to previous years. Therefore, historic figures are not directly comparable.
Figure 7* illustrates ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô for the financial year ending March 2025 broken down by turnover band:
- the turnover band with the most traders was the £1 to threshold annual turnover band with 683,700 traders (29% of ³Ù³ó±ðÌýVATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô)
- 38% of traders declared an annual turnover up to and including ³Ù³ó±ðÌýVAT registration threshold (£90,000 in 2024 to 2025)
Figure 7: VATÌý±è´Ç±è³Ü±ô²¹³Ù¾±´Ç²Ô by annual turnover bands for the financial year ending March 2025.
Table:
| Turnover Band | Number of Traders |
|---|---|
| Negative or £0 | 211,400 |
| £1 to threshold | 683,700 |
| > threshold to £150,000 | 280,400 |
| > £150,000 to £300,000 | 338,600 |
| > £300,000 to £500,000 | 186,700 |
| > £500,000 to £1m | 184,100 |
| > £1m to £1,350,000 | 57,800 |
| > £1,350,000 to £1,600,000 | 27,600 |
| > £1,600,000 to £10m | 155,100 |
| > £10m | 45,800 |
For the full dataset that accompanies Figure 7 go to Value Added Tax (VAT) tables 2024 to 2025.
5. VATÌý±ô¾±²¹²ú¾±±ô¾±³Ù¾±±ð²õ
The net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â declared on VATÌý°ù±ð³Ù³Ü°ù²Ôs does not include:
- payments or repayments that are unrelated to ³Ù³ó±ðÌýVATÌý°ù±ð³Ù³Ü°ù²Ô
- payments or repayments do not match the amount declared on ³Ù³ó±ðÌýVATÌý°ù±ð³Ù³Ü°ù²Ô (for example where repayment is withheld by HMRC)
Therefore, the net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â declared on VATÌý°ù±ð³Ù³Ü°ù²Ôs is not the same as the payments and repayments made by a business.
5.1 Overview
Figure 8 illustrates the following changes in net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â over the last 10 financial years:
- net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â in 2024 to 2025 was £177 billion
- net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â has increased £5 billion (+3%) since 2023 to 2024
- the year-on-year increases in net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù¾±±ð²õ have been larger since 2020 to 2021, in line with changes to ±á´Ç³¾±ðÌýVATÌý°ù±ð³¦±ð¾±±è³Ù²õ
- net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â has increased by £80 billion (82%) during the past 10 financial years
Figure 8: Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â over the last 10 years to 2024 to 2025.
Table:
| Financial Year | Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (£ billion) |
|---|---|
| 2015-16 | 97 |
| 2016-17 | 100 |
| 2017-18 | 103 |
| 2018-19 | 105 |
| 2019-20 | 109 |
| 2020-21 | 98 |
| 2021-22 | 141 |
| 2022-23 | 157 |
| 2023-24 | 172 |
| 2024-25 | 177 |
5.2 Sector
Figure 9 illustrates the net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â from the top 10 trade sectors for the financial year ending March 2025:
- the largest contributor to the net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â was Wholesale and Retail, with a net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â of £57 billion
- the Professional, Scientific and Technical Activities sector (£29 billion) and Manufacturing sector (£24 billion) were also large contributors to the net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â
Figure 9: Contribution to net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â from the top 10 trade sectors for the financial year ending March 2025.
Table:
| Sector | Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (£ billion) |
|---|---|
| Wholesale and Retail | 57 |
| Professional, Scientific and Technical Activities | 29 |
| Manufacturing | 24 |
| Information and Communications | 22 |
| Administrative and Support Service Activities | 18 |
| Construction | 12 |
| Accommodation and Food Service Activities | 12 |
| Real Estate Activities | 5 |
| Other Service Activities | 4 |
| Electricity, Gas, Steam and Air Conditioning Supply | 4 |
Figure 10 illustrates the 10 sectors which had the largest changes in net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â during the financial year ending March 2025:
- the largest year-on-year change in net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â was in the Information and Communications sector whose net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â increased by £3 billion (+14%).
- the second largest year-on-year change in net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â was in the Electricity, Gas, Steam and Air Conditioning Supply sector whose net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â decreased by -£2 billion (-34%).
- the largest percentage change in Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â was in the Education sector whose Net ±á´Ç³¾±ðÌýVAT Liability increased by £1 billion (+129%)
Figure 10: Year-on-year actual change in Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â of the top 10 contributing sectors for the financial year ending March 2025.
Table:
| Sector | Year on Year Change in Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (£ billion) |
|---|---|
| Information and Communications | 3.0 |
| Wholesale and Retail | 1.0 |
| Professional, Scientific and Technical Activities | 1.0 |
| Construction | 1.0 |
| Real Estate Activities | 0.6 |
| Education | 0.5 |
| Public Administration & Defence | -0.5 |
| Transportation and Storage | -0.8 |
| Administrative and Support Service Activities | -1.0 |
| Electricity, Gas, Steam and Air Conditioning Supply | -2.0 |
For the full dataset that accompanies Figure 10 go to Value Added Tax (VAT) tables 2024 to 2025.
5.3 Business type
Figure 11 illustrates the net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â for the financial year ending March 2025 broken down by business type:
- incorporated companies made the largest positive contribution of £178 billion to net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â
- local authorities made the largest negative contribution of -£12 billion to net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â
Figure 11: Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â by business type for the financial year ending March 2025.
Table:
| Business Type | Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (£ billion) |
|---|---|
| Incorporated company | 178.0 |
| Sole proprietor | 5.0 |
| Partnership | 4.0 |
| Non profit making body or mutual association other than a corporate body | 3.0 |
| Unknown | 0.1 |
| Public corporation or nationalised industry | -0.2 |
| Local authority | -12.0 |
5.4 Turnover band
Before financial year 2022 to 2023, traders with a negative turnover were previously classified as having an unknown turnover. For financial year 2022 to 2023 onwards, traders with a negative turnover are included in the ‘Negative or £0’ turnover band. It is not feasible to implement this improvement to previous years. Therefore, historic figures are not directly comparable.
Figure 12 illustrates the net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â for the financial year ending March 2025 broken down by turnover band:
- traders with a turnover of greater than £10 million accounted for the largest amount of net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (£133 billion).
- traders with a turnover of up to and including ³Ù³ó±ðÌýVAT registration threshold (£90,000 in 2024 to 2025) had a combined net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â of -£3 billion.
Figure 12: Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â by annual turnover bands for the financial year ending March 2025.
Table:
| Turnover Band | Net ±á´Ç³¾±ðÌýVATÌý±ô¾±²¹²ú¾±±ô¾±³Ù²â (£ billion) |
|---|---|
| Negative or £0 | -3.0 |
| £1 to threshold | -0.3 |
| > threshold to £150,000 | 2.0 |
| > £150,000 to £300,000 | 5.0 |
| > £300,000 to £500,000 | 4.0 |
| > £500,000 to £1m | 7.0 |
| > £1m to £1,350,000 | 3.0 |
| > £1,350,000 to £1,600,000 | 2.0 |
| > £1,600,000 to £10m | 24.0 |
| > £10m | 133.0 |
6. Contacts and User Engagement
°Õ³ó±ðÌýVAT annual statistics are produced by HMRC as part of ³Ù³ó±ðÌýExcise duties, VAT and other indirect tax statistics collection.
A consultation on changes to HMRC statistics publications was held between 6 January 2025 and 10 April 2025 and the results have been published.
HMRCÂ welcomes user engagement to improve the departments National and Official Statistics. You can contact statistics producers via our feedback avenues.
For statistical enquiries, contact:Â revenuemonitoring@hmrc.gov.uk
For media enquiries, see HMRC press office. Telephone: 03000 550 493