Companies: VAT
Commons · Question 73232 · Tabled 29 Aug 2025 · Treasury · Official record
Answered 8 Sep 2025
Question
Asked by Edward Morello
To ask the Chancellor of the Exchequer, what the average administrative cost is of collecting VAT from a VAT-registered company.
Answer
Answered by Dan Tomlinson, 8 Sep 2025
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 ...