HMRC has published the official VAT statistics for 2019/20
The headlines are:
- Total VAT receipts in 2019-20 decreased by 1.5% from the previous financial year. There was a downward impact on receipts from the VAT deferral measure which took effect from 20 March 2020.
- The Wholesale and Retail sector continued to be the largest contributor to net home VAT liabilities.
- 62% of total net home VAT declared was paid by traders with an annual turnover greater than £10 million.
- Incorporated companies accounted for the largest share of the VAT population and annual taxable turnover. This group accounted for 72% of traders, and 91% of annual taxable turnover in 2019-20.
- Sole proprietors were the second largest group in terms of VAT population; this group accounted for 16% of VAT traders. However, the annual taxable turnover declared by this group only accounted for 1% of the total for 2019-20.
- The Professional, Scientific and technical activities sector increased by £860 million (5%), the largest year-on-year change.
- The Real Estate Activities sector decreased by £530 million (12%) and the Construction sector decreased by £160 million (3%) year-on-year, although both sectors remain in the top ten sectors in terms of contribution to VAT liabilities.
- 46.7% of traders declared annual turnover below the VAT registration threshold.
- More than half of net home VAT payments are accounted for by traders in the top 0.5% in 2019-20.