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The number of VAT-based enterprises in the UK increased by 1.2 per cent between 2004 and 2005, to just over 1.6 million - a trend reported by HM Revenue & Customs.
The average annual growth in VAT-based enterprises was 2.0 per cent between 1984 and 1991. This was followed by an average fall of 2.4 per cent a year between 1992 and 1996. There was then a return to growth, although at a slower rate than in the late 1980s.
In 2005, 49 per cent of VAT-based enterprises were corporate businesses (companies and public corporations), 31 per cent sole proprietors, 18 per cent partnerships and 2 per cent general government and non-profit making bodies. Company registrations have seen large growth since the mid 1990s balanced by a decrease in sole proprietors and partnerships. This reflects the trend reported by Companies House.
The property and business services sector accounts for the largest number of VAT-based enterprises with 28 per cent of all units registered in 2005. This is followed by construction (12 per cent) and retail (11 per cent).
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