Written questions by MacDonald.

Whether she has made an assessment of whether Vehicle Excise Duty rates for vehicles in the highest bands are a proportionate application of the polluter pays principle.

Awaiting answer.

What assessment she has made of the proportionality of Vehicle Excise Duty rates for higher-emission vehicles; and whether she plans to review the differential between vehicles in the lowest and highest emission bands.

Awaiting answer.

What assessment her department has made of the potential impact of VAT on domestic energy bills on regional inequalities in electricity standing charges and unit rates.

Awaiting answer.

With reference to her Department's policy paper entitled Tax avoidance loan schemes and the loan charge, published on 26 November 2025, if she will publish a breakdown of the sources of the £3.2 billion figure.

This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The full breakdown of the £3.2bn figure referenced in the November 2025 policy paper, was published on 23 April 2020 and can be found on GOV.UK: Section 4 - Policy Costing - GOV.UK

Pursuant to the Answer of 30 March 2026 to Question 122630 on Business: VAT, whether her Department has made an assessment on the effect that inflation has had on small business' ability to stay under the VAT threshold over the past decade.

At £90,000, the UK has a higher VAT registration threshold than any EU country and one of the highest in the OECD. This means the majority of UK businesses are not in the VAT system, reducing administrative burdens for small businesses. The government regularly assesses the level of the threshold taking into account impacts on small businesses, the economy as a whole, and tax revenues. Any changes would be made at a fiscal event, taking into account the position of the overall public finances.

Whether her Department has considered introducing (a) business rates relief and (b) National Insurance contribution rebates for small independent MOT testing stations.

There are a wide range of factors to take into consideration when introducing a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost. The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way. At the Budget, the Government acted to limit increases in business rates bills, announcing a support package worth £4.3 billion. The Government introduced new permanently lower multipliers for eligible retail, hospitality and leisure properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties. Additionally, around a third of properties already pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers. Businesses are able to claim employer NICs reliefs for under-21s and under-25 apprentices. This means employers pay no employer NICs for apprentices under 25 or employees under 21 on earnings up to £50,270. These reliefs are estimated to be worth around £2.5 billion in 2025/26.

With reference to FOI2025/189761 dated 2 January 2026, what assessment she has made of the value for money of HMRC's compliance and enforcement activities relating to the Loan Charge.

This Government recognised that concerns were raised about the Loan Charge under the previous government and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned a new independent review of the Loan Charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the Loan Charge. The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HM Revenue and Customs (HMRC). In turn, this requires those individuals or employers to now come forward and engage with HMRC in good faith. Whilst HMRC assesses the overall resources needed to carry out Loan Charge compliance activity, this is not based on detailed case-by-case forecasts. HMRC is required to collect tax due under the law. The progression and resolution of Loan Charge cases depend on a range of variable and often uncertain factors. These include the extent to which taxpayers choose to engage with HMRC to settle their enquiries. In line with most tax policy changes, Tax Impact and Information Note (TIIN) setting out HMRC’s assessment of the impacts of the Loan Charge were published when the Loan Charge was announced in 2016. Further TIINs were published alongside subsequent changes to the Loan Charge.

What comparative assessment her Department has made of the (a) VAT Registration Threshold and (b) rate of inflation between 2014 and 2026.

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This reflects the Government’s approach to balance the impacts on small businesses, with the needs of the wider economy and the public finances. Such a comparatively high threshold means the majority of UK businesses are not in the VAT system at all, reducing administrative burdens and supporting growth.

Pursuant to her Oral Statement on Youth Unemployment, whether her Department has considered the benefits of raising the VAT Threshold to remove the potential barriers to sole traders taking on more work and hiring apprentices.

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are not in the VAT system at all, reducing administrative burdens and supporting their growth. The Government’s approach to the VAT registration threshold aims to balance the impacts on small businesses, including their growth and financial sustainability, with the needs of the wider economy and the public finances. Increasing the VAT registration threshold would come at a significant fiscal cost and reduce the revenue available for vital public services. More than £1.5 billion is being made available over the Spending Review period for investment in employment and skills support. This includes £725 million for the Growth and Skills Levy, to help support apprenticeships for young people and fully fund SME apprenticeships for under-25s.

What estimate her Department has made of the administrative burden to the Treasury of processing VAT receipts for Businesses with a turnover under £250,000.

HMRC has not made an estimate of the administrative burden to the Treasury for processing VAT receipts for businesses with a turnover below £250,000. HMRC measures its overall operational costs across all taxes and does not hold this information at the level of granularity required to isolate costs attributable to businesses with a turnover under £250,000.

What estimate her Department has made of the average time spent by businesses with turnover below £250,000 on VAT compliance, including preparing returns and maintaining records.

HMRC does not estimate the administrative cost to businesses with a turnover below £250,000 for processing and submitting VAT returns, as the cost can vary between businesses, regardless of their turnover. Administrative costs are largely dependent on their individual business processes and the nature and complexity of their record keeping.

000.

HMRC does not estimate the administrative cost to businesses with a turnover below £250,000 for processing and submitting VAT returns, as the cost can vary between businesses, regardless of their turnover. Administrative costs are largely dependent on their individual business processes and the nature and complexity of their record keeping.

What comparative assessment her Department has made of the impact of the High Income Child Benefit Charge threshold on single-earner and two-earner households.

The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs. The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000.  The HICBC threshold was £50,000 prior to 6 April 2024. The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable. HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out. As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.

Whether she plans to review the income threshold for the High Income Child Benefit Charge.

The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs. The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000.  The HICBC threshold was £50,000 prior to 6 April 2024. The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable. HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out. As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.

Whether her Department has made an assessment of the potential impact of the VAT registration threshold on the UK’s obligations under the Protocol on Ireland/Northern Ireland as amended by the Windsor Framework.

VAT policy, including the VAT registration threshold, applies on a UK-wide basis and operates in Northern Ireland in line with the UK’s international obligations under the Windsor Framework.The VAT registration threshold is consistent with the operation of the Framework.

What assessment her Department has made of the potential impact of VAT registration threshold on incentives for small businesses to increase their turnover.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations. There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

What assessment her Department has made of the potential impact of the VAT registration threshold on the level of recruitment of additional employees or apprentices by small businesses.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations. There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

What data her Department has used to estimate the potential behavioural impacts of changes to the VAT registration threshold on small businesses.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations. There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

What assessment her Department has made of the potential impact of raising the VAT registration threshold on the public purse.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations. There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

What role Ministers and officials had in setting the scope and terms of reference for the review of Loan Charge settlement arrangements conducted by Ray McCann.

The Review’s Terms of Reference were drafted by the independent reviewer and then agreed with Ministers.Ministers received advice from officials in line with normal processes. This ensured that the Terms of Reference met legal requirements and the objectives agreed between Ministers and the reviewer.