Written question asked by Edward Morello (Liberal Democrat) on Friday, 29 August 2025, in the House of Commons. It was due for an answer on Tuesday, 2 September 2025. It was answered by Dan Tomlinson (Labour) on Monday, 8 September 2025 on behalf of the Treasury.
Companies: VAT
- Question
-
To ask the Chancellor of the Exchequer, what the average administrative cost is of collecting VAT from a VAT-registered company.
- Answer
-
HMRC calculate annually the cost to collect £1 of VAT. In 2024-25, it cost 0.58 pence, i.e. less than one penny, to collect £1 of VAT on average. This ratio has been broadly stable over recent years.
Cost of Collection - VAT - 5 year Trend from 2020-2021 to 2024-2025
2020-2021
2021-2022
2022-2023
2023-2024
2024-2025
pence
pence
pence
pence
pence
VAT
0.63
0.52
0.54
0.58
0.58
Secondary information
- Type
- Written question
- Reference
- 73232
- Session
- 2024-26
- Subjects
- Companies Tax collection VAT
- Contains statistics
- Yes
- Link
- View this Written question on www.parliament.uk
Librarians' tools
- Timestamp
- 2025-09-23 16:11:00 +0100
- URI
- http://data.parliament.uk/writtenparliamentaryquestion/commons/2024-25/73232
- In Indexing
- http://indexing.parliament.uk/Content/Edit/1?uri=http://data.parliament.uk/writtenparliamentaryquestion/commons/2024-25/73232
- In Solr
- https://search.parliament.uk/claw/solr/?id=http://data.parliament.uk/writtenparliamentaryquestion/commons/2024-25/73232