Written questions by Snowden.

What steps HMRC is taking to ensure compliance with the new VAT rules for private hire vehicle operators following the closure of access to the Tour Operators Margin Scheme.

HMRC is undertaking a range of measures to ensure compliance with the new VAT rules for private hire vehicle operators (“PHVOs”) following the changes made to the Tour Operators’ Margin Scheme (“TOMS”). These measures include publishing a Revenue and Customs Brief (“R&CB”) to explain the legislative changes and to outline the correct processes for operators, working closely with industry stakeholders to address concerns and ensure that operators understand their obligations under the new rules. HMRC’s compliance procedures involve routine audits, risk assessments, and investigations of discrepancies to ensure that all businesses adhere to the VAT requirements. HMRC expects all businesses to comply with their tax obligations, however where they do not HMRC will take steps to correct errors and if necessary use their powers to recover unpaid VAT.

Pursuant to the written answer of 9 December 25 to question 96953 on Child Benefit, how many of the 23,500 compliance enquiries (i) were confirmed to be eligible, (ii) were found to have been incorrectly receiving the benefit and (iii) are yet to receive an outcome.

HMRC has now completed its review of Child Benefit compliance cases where a PAYE check had not been undertaken. As of 30 November 2025, out of the 23,794 cases opened between August and October 2025, 14,994 Child Benefit customers have been confirmed to be eligible to Child Benefit. Of the remaining 8,800 cases, 1,019, have been determined to have been incorrectly receiving Child Benefit, and 7,781 enquiries remain open as the customer has not yet provided evidence to enable a final determination of residency. The data from the 23,794 cases is not comparable with the pilot. Recognising the issues with the implementation of the expansion, HMRC put in place an expediated process for customers that varied from the way it applied checks in the pilot. The information from the pilot remains HMRC’s best assessment of the effectiveness of the activity using international travel data to reduce error and fraud.

What assessment she has made of the effectiveness of the online Self Assessment Time to Pay system in reducing the number of late payment penalties.

HMRC’s Time to Pay (TTP) arrangements help taxpayers to pay their liabilities in affordable and sustainable instalments. Late payment penalties do not apply provided the plan is agreed before penalty trigger dates and instalments are paid on time. HMRC’s online TTP service for Self Assessment offers taxpayers the option to set up their own payment plans for Self Assessment debts up to £30,000. HMRC publishes data on TTP arrangements as part of its quarterly performance updates and in its Annual Report and Accounts. Over 90% of TTP arrangements are completed successfully, demonstrating their effectiveness in supporting compliance and reducing penalties.

What recent discussions she has had with the brewing and pub sector on business rates affordability following the November Budget.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. Treasury Ministers and officials engaged with a wide range of stakeholders across the pub and hospitality sector ahead of the Budget to discuss business rates.

What criteria will guide decisions on whether an overnight stay levy is “modest” and appropriate for local areas; and will there be a cap.

The precise design and scope of the power for Mayors to introduce a visitor levy is still under development. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear their concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is spent. Giving this power to local leaders who best understand their region enables them to tailor it to growing their local economies The Government has published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders. The consultation seeks views on whether there should be a cap on the rate.

How many staff in her Department are permitted to undertake diversity-related network time during core working hours; and what proportion of overall working time are they permitted to spend on such network activity.

Participation in staff networks is primarily voluntary and carried out in addition to an employee’s job role.

If she will make an estimate of how many businesses in the Fylde constituency will be impacted by the pay per mile tax on electric and hybrid cars.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. When eVED takes effect in April 2028, eVED rates will be set at 3p per mile for electric vehicles, which is half the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that driving an electric vehicle continues to be an attractive choice for consumers. The rate will be set at 1.5p per mile for plug-in hybrids, recognising that they will continue to pay fuel duty on miles driven in petrol mode. An average EV driver driving 8,000 miles per year will pay around £240 per year or £20 per month. As set out by the OBR, the estimated net impact of eVED and other Budget measures, including the ECG and ECS, is 120,000 fewer new EV sales across the forecast period. This is against a baseline which assumes EV sales more than triple from 2025-26 levels by 2030-31, which means the net impact of eVED represents only 2% of total new EV sales in the period.The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf

If she will make an estimate of the impact of the pay per mile tax on electric vehicle usage in the Fylde constituency.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. When eVED takes effect in April 2028, eVED rates will be set at 3p per mile for electric vehicles, which is half the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that driving an electric vehicle continues to be an attractive choice for consumers. The rate will be set at 1.5p per mile for plug-in hybrids, recognising that they will continue to pay fuel duty on miles driven in petrol mode. An average EV driver driving 8,000 miles per year will pay around £240 per year or £20 per month. As set out by the OBR, the estimated net impact of eVED and other Budget measures, including the ECG and ECS, is 120,000 fewer new EV sales across the forecast period. This is against a baseline which assumes EV sales more than triple from 2025-26 levels by 2030-31, which means the net impact of eVED represents only 2% of total new EV sales in the period.The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf

How many new enquiries were opened into child benefit claims which were suspended from claimants as a result of data-sharing between HMRC and the Home Office in the period 1st to 30th November 2025.

There were no new Child Benefit compliance enquiries opened using Home Office international travel data in the period 1st to 30th November 2025. This is because our focus during that time was on reviewing the c. 23,500 already opened.

What engagement she undertook with the pub and hospitality sector ahead of the 2025 Budget, particularly in the context of Business Rates.

Treasury Ministers and officials engaged with a wide range of stakeholders across the pub and hospitality sector ahead of the Budget to discuss business rates.We continue to engage with the hospitality sector to understand the pressures they face.

Whether the Government has considered recognising listed church buildings as national heritage assets in the tax system.

Church buildings are not usually owned by individuals and so are not usually chargeable to inheritance tax. Where an individual inherits and wishes to retain heritage property they can claim Conditional Exemption, so that there is no inheritance tax for as long as the property is maintained and open to the public to enjoy. Comprehensive guidance is available on gov.uk at: https://www.gov.uk/government/publications/capital-taxation-and-tax-exempt-heritage-assets Otherwise, gifts of property to charities or to a recognised National Body (listed at https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm11224 ) would be exempt from inheritance tax.

What the expected distributional impact is of the 2025 Budget measures on households in the North West of England.

The government is committed to growing living standards in all parts of the country in a fair and progressive manner, and has acted at Budget 2025 to cut the cost of living for households across the nation. HM Treasury’s ‘Impact on households’ publication, produced alongside the 2025 Budget, shows that the impacts of government tax, welfare and public service spending decisions from Autumn Budget 2024 onwards. This analysis can be found here: https://assets.publishing.service.gov.uk/media/69269c6222424e25e6bc31bb/Impact_on_households.pdf HM Treasury does not produce a distributional assessment of policy decisions at a subnational level.

What assessment she has made of the potential impact of the new Electric Vehicle Excise Duty mileage charge from April 2028 on Electric Vehicle uptake.

The Government intends to create a fair motoring tax system while supporting the automotive industry and ensuring EVs remain an attractive choice for consumers. As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. While it is fair for EV drivers to contribute for their car usage, the government is also committed to ensuring that driving an electric vehicle is an attractive choice for consumers. Therefore, the rate of eVED paid by electric vehicle drivers will be half the fuel duty rate paid by the average petrol/diesel driver, ensuring that it will still be cheaper to own and run an EV for the majority of EV drivers. The Government is also providing generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG), £200 million for chargepoint rollout, and increasing the Expensive Car Supplement (ECS) threshold to £50,000 for EVs. This support will be introduced before the tax takes effect to support continued momentum in EV take-up. The Government has set out the expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf

What assessment she had made of the potential impact of changes to pension salary sacrifice relief on the number of people saving for retirement in the Fylde constituency.

Automatic enrolment into pension saving has driven up the number of employees saving for retirement. The existing income tax relief regime for pensions is unaffected by this change, whilst employer contributions can continue to be made free of National Insurance Contributions (NICs). At £2,000 cap means the majority of people usoing salary sacrifice for pension saving will be entirely unaffected by this change. Individuals earning below £30,000 are overwhelmingly protected, with few (c. 5%) making salary sacrifice contributions above this threshold. employee pension contributions up to £2,000. In line with the OBR assessment of this change, the costing assumes some employer costs will be passed through into lower employer pension contributions. The government continues to support and incentivise pension saving, with tax relief worth over £70bn per year, even after this change. Employers must continue to meet their automatic enrolment obligations. The policy balances encouragement of pension saving with ensuring the system remains fiscally sustainable and fair. A Tax Information and Impact Note will be published in due course alongside the legislation when it is introduced to Parliament.

What assessment she has made of the potential impact of the 2025 Budget’s changes to personal taxation on average earners in the Fylde constituency.

The government has published a Tax Information and Impact Note (TIIN) setting out the impact of maintaining income Tax and equivalent National Insurance contributions thresholds.

What estimate she has made of the number of households in Fylde who will be brought into paying income tax or higher tax bands as a result of extending the freeze on income tax personal allowance.

The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below: https://obr.uk/download/november-2025-economic-and-fiscal-outlook-detailed-forecast-tables-receipts/?tmstv=1764165511

When she plans to provide an answer to Question 22764 on Government Securities: Public Sector Debt.

A response was provided for Question 22764 on 13 January 2025. The government does not comment on specific financial market movements.

If she will take steps to ensure that contractors have the same right to (a) settlement and (b) negotiated concession of their tax bills that are provided to large companies.

HMRC applies the law fairly and consistently in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law.Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.HMRC’s LSS can be found on gov.uk: www.gov.uk/government/publications/litigation-and-settlement-strategy-lss

Pursuant to the Answer of 19 November 2025 to Question 89705 on Child Benefit, whether HMRC plans to publish a report on a) the circumstances of the error and b) lessons learned from the review into suspended Child Benefit claims, including methodology, criteria for suspension, and the results of PAYE checks.

HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC is taking. This letter was subsequently published by the Committee on 18 November 2025. There are no plans to publish a report.In the response to the Treasury Select Committee, HMRC provided figures for those customers subsequently confirmed as eligible through a PAYE check or customer contact up to and including 31 October 2025. This time period reflects that figures are only validated after the month end. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November 2025, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks in which to make contact. HMRC holds information by postal address although HMRC would be unable to release to such a granular level due to the risk of breaching taxpayer confidentiality. HMRC’s pilot last year using international travel data prevented around £17m in incorrect payments. This led to a wider rollout and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, which is expected to save around £350 million over the next five years.

Pursuant to the Answer of 19 November 2025 to Question 89703 on Child Benefit, if she can advise what is the most localised level for which data is available.

HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC is taking. This letter was subsequently published by the Committee on 18 November 2025. There are no plans to publish a report.In the response to the Treasury Select Committee, HMRC provided figures for those customers subsequently confirmed as eligible through a PAYE check or customer contact up to and including 31 October 2025. This time period reflects that figures are only validated after the month end. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November 2025, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks in which to make contact. HMRC holds information by postal address although HMRC would be unable to release to such a granular level due to the risk of breaching taxpayer confidentiality. HMRC’s pilot last year using international travel data prevented around £17m in incorrect payments. This led to a wider rollout and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, which is expected to save around £350 million over the next five years.