Wholesale and retail VAT trader count rose by 9,500 to 511,300 in 2024–25
HMRC reported that the number of active VAT traders in the wholesale and retail sector increased by 9,500 to reach 511,300 in the 2024–25 fiscal year. This increase was the largest numerical gain across all sectors and meant wholesale and retail accounted for 22% of active VAT traders and £57bn of net Home VAT liability.
Across the whole UK VAT population, active traders grew by 11,400 to reach 2.33 million, meaning wholesale and retail contributed most of the net increase. The sector’s net Home VAT liability was £57bn, which was £1bn higher than the previous year. HMRC recorded 234,000 new VAT registrations and 218,000 deregistrations during 2024–25, showing substantial churn beneath the headline growth. The agency cautions that a rise in VAT traders does not equate to new shops opening or higher consumer demand, as businesses may register or deregister for reasons unrelated to retail activity. HMRC notes that the year‑end count of live traders was 2,285,900, while its annual active trader figure of 2.33 million includes anyone who filed a non‑nil VAT return at any point during the year.
HMRC’s latest annual VAT statistics, covering 2024–25 and updated in December 2025, provide a baseline for examining the registered trading population. HMRC’s figures reveal changes in the registered business population, but cannot alone establish whether retail sales or competitive pressure are rising.
What we know
The number of active VAT traders in HMRC’s wholesale and retail category rose by 9,500 to 511,300 in 2024–25, a 2% increase and the largest numerical gain of any sector.
The combined category represented 22% of active VAT traders and £57bn in net Home VAT liability, making it the largest sector by both measures.
Its £57bn liability was £1bn higher than a year earlier.
The increase stood out against relatively modest growth across the UK VAT population, which added 11,400 traders to reach 2.33 million.
Across all sectors, HMRC recorded 234,000 new VAT registrations and 218,000 deregistrations during 2024–25.