Written questions by Lowe.

What estimate she has made of the cost to the economy of compliance with VAT regulations for small businesses.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD, at £90,000. This keeps the majority of small businesses out of the VAT regime altogether.

What estimate she has made of the administrative cost of collecting Inheritance Tax as a proportion of total revenue.

The figure for the cost of collecting Inheritance Tax (pence per pound collected) for 2024/25 is 0.78. This means as a proportion of total Inheritance Tax revenue, the administrative cost of collecting Inheritance Tax was 0.78% in that year.

How much her Department has spent on social media advertising by (a) influencer and (b) organisation in each of the last five financial years.

The department has spent £0 on social media advertising in the last 5 financial years.

What comparative assessment her Department has made of (a) tax and (b) benefit contributions of people by (i) nationality and (ii) country of birth since 2020.

HM Treasury does not routinely publish information which is released in response to Freedom of Information (FOI) requests. The FOI was answered in accordance with the Freedom of Information principles.

Whether (a) ministers and (b) special advisers from her Department have received briefings on analyses of (a) tax contributions and (b) benefits of people by (i) ethnicity, (ii) nationality and (iii) country of birth since 2020.

HM Treasury does not routinely publish information which is released in response to Freedom of Information (FOI) requests. The FOI was answered in accordance with the Freedom of Information principles.

What information her Department holds on the average (a) waiting time for people calling and (b) time spent on hold to the HMRC self-assessment line in each of the last five years.

The below table provides the average call answer time (minutes: seconds) for HMRC’s employers helpline in each of the last five years: YearTotal average over the year2020-2109:072021-2212:032022-2316:032023-2422:202024-2526:32 Overall, HMRC’s telephony performance was better in 2024-25 compared to 2023-24. However, HMRC’s employer helpline was affected by industrial action from December 2024, and this impacted wait times. The industrial action concluded in June 2025 and calls to the employer helpline are now being answered more quickly compared to 2024-25. The average time spent on hold measures when a call has been answered by an adviser and the individual has subsequently been put on hold. The below table provides the average time spent on hold (minutes: seconds) for HMRC’s employers helpline in each of the last five years: YearAverage time spent on hold2020-21This data is not available2021-2202:002022-2301:242023-2401:352024-2501:19 The below table provides the average call answer time (minutes: seconds) for HMRC’s Self Assessment helpline in each of the last five years: YearTotal average over the year2020-2115:122021-2217:072022-2325:142023-2437:152024-2523:40 Call volumes to HMRC vary widely throughout the year and wait times can increase during busy periods. Calls to the Self Assessment helpline were generally answered more quickly in 2024-25 compared to 2023-24. The below table provides the average time spent on hold (minutes: seconds) for HMRC’s Self Assessment helpline in each of the last five years: YearAverage time spent on hold (minutes: seconds)2020-21This data is not available2021-2201:282022-2301:392023-2402:022024-2502:04 Improving day-to-day performance is a key priority for HMRC. In 2024-25, HMRC handled 71.5% of adviser attempts across their helplines and had an average call answer time of 18 minutes 38 seconds. So far this year (April – August 2025), they have handled 83.5% of adviser attempts and call wait times have decreased to 13 minutes 38 seconds.

What information her Department holds on (a) the average call answer time and (b) time spent on hold for people calling the HMRC employers general enquiries line in each of the last five years.

The below table provides the average call answer time (minutes: seconds) for HMRC’s employers helpline in each of the last five years: YearTotal average over the year2020-2109:072021-2212:032022-2316:032023-2422:202024-2526:32 Overall, HMRC’s telephony performance was better in 2024-25 compared to 2023-24. However, HMRC’s employer helpline was affected by industrial action from December 2024, and this impacted wait times. The industrial action concluded in June 2025 and calls to the employer helpline are now being answered more quickly compared to 2024-25. The average time spent on hold measures when a call has been answered by an adviser and the individual has subsequently been put on hold. The below table provides the average time spent on hold (minutes: seconds) for HMRC’s employers helpline in each of the last five years: YearAverage time spent on hold2020-21This data is not available2021-2202:002022-2301:242023-2401:352024-2501:19 The below table provides the average call answer time (minutes: seconds) for HMRC’s Self Assessment helpline in each of the last five years: YearTotal average over the year2020-2115:122021-2217:072022-2325:142023-2437:152024-2523:40 Call volumes to HMRC vary widely throughout the year and wait times can increase during busy periods. Calls to the Self Assessment helpline were generally answered more quickly in 2024-25 compared to 2023-24. The below table provides the average time spent on hold (minutes: seconds) for HMRC’s Self Assessment helpline in each of the last five years: YearAverage time spent on hold (minutes: seconds)2020-21This data is not available2021-2201:282022-2301:392023-2402:022024-2502:04 Improving day-to-day performance is a key priority for HMRC. In 2024-25, HMRC handled 71.5% of adviser attempts across their helplines and had an average call answer time of 18 minutes 38 seconds. So far this year (April – August 2025), they have handled 83.5% of adviser attempts and call wait times have decreased to 13 minutes 38 seconds.

Whether the Office for National Statistics has provided (a) data, (b) technical support and (c) modelling assistance her Department in connection with analyses of (i) tax contributions and (ii) benefit claims by (A) ethnicity, (B) nationality, and (C) country of birth.

The Office for National Statistics (ONS) produces the Living Costs and Food survey which is one of the household microdata sets used regularly for analysis of tax and welfare measures by protected characteristics to fulfil the requirements under the Public Sector Equality Duty in the Equality Act 2010. The ONS has not provided any technical support or modelling assistance.

If she will publish the (a) figures, (b) charts and (c) underlying data tables on (i) income tax and (ii) indirect tax contributions by ethnicity referenced in her Department's Freedom of Information response FOI2025/18562.

HM Treasury does not routinely publish information which is released in response to Freedom of Information (FOI) requests. The FOI was answered in accordance with the Freedom of Information principles.

What recent estimate she has made of the number of farms that could be affected by proposed changes to inheritance tax.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free. The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data. The Government published a tax information and impact note on 21 July 2025 and this is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms. The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.

How many compliance investigations were (a) opened and (b) closed by HM Revenue and Customs on businesses classified under Standard Industrial Classification codes (a) 96020 (hairdressing and barbering) and (b) 96090 (nail and beauty services) in each year since 2020; and what the total (A) number and (b) value was of (1) penalties issued, (2) cash seizures and (3) civil recovery actions taken under the Proceeds of Crime Act in those sectors.

HMRC does not hold specific data showing the number of hairdressers and nail salons investigated for tax non-compliance. HMRC’s approach to tax compliance includes a range of activities that aim to both detect and tackle current non-compliance and change future behaviours. HMRC aims to help and support customers to understand their tax obligations and provides clear guidance to make it easy for them to get things right. HMRC is aware that some workers and businesses in the hairdressing and beauty sector find it hard to understand their tax obligations. To help support these customers, HMRC has worked with trade bodies for this sector to develop new educational material including a YouTube video and has published guidance on GOV.UK to better explain the employment status and tax implications of different business models. Details can be found at: https://youtu.be/5o3au6PyXG8 and https://www.gov.uk/guidance/check-employment-status-if-you-work-in-hair-and-beauty Closing the Tax Gap is one of HMRC’s three priorities. The government is committed to measures which will raise over £7.5 billion additional tax revenue per year by 2029 to 2030. This includes the package to close the tax gap at Autumn Budget 2024 (£6.5 billion) and further messages at Spring Statement 2025 (over £1 billion). As part of these packages, HMRC will receive extra funding over the next five years to recruit an additional 5,500 compliance staff and to fund 2,400 debt management staff. HMRC has led multiple operations in the hair and beauty sector, specifically barbers and nail bars. For example, during March 2025, HMRC undertook a series of unannounced visits (including Turkish style barbers) across the West Midlands as part of a three-week operation conducted jointly with the NCA and other agencies. This exercise resulted in Police seizures under Proceeds of Crime provisions of more than £500k in cash and illegal funds.

What the (a) average waiting time for people calling and (b) time people spent on hold for HMRC was in the last year.

HMRC telephony performance data, including the average speed of answering a customer’s call, is published on a regular basis and can be accessed at: https://www.gov.uk/government/collections/hmrc-quarterly-performance-updates The definition of ‘average speed of answering a customer’s call’ is the average time spent waiting in the queue for an adviser. This is from the time that the customer finished listening to HMRC’s automated messages and completed their selection from HMRC’s automated menu to the time when they get to speak to an adviser. The below table shows the average amount of time people spent on hold with HMRC – this is when a call has been answered by an adviser and the individual has subsequently been put on hold. The data covers the past year, broken down by quarter: 2024-25 Q12024-25 Q22024-25 Q32024-25 Q41min 4s1min 25s1min 16s1min 15s HMRC are taking steps to make sure more of their services are digital, so customers can self-serve online. HMRC online services and the HMRC app are convenient to access and receive high customer satisfaction ratings. As more people use HMRC online services, advisers are freed up to support those with more complex queries and those who are digitally excluded.

If she will publish a breakdown of her Department's August 2024 individual level analysis of Income Tax brackets by (a) ethnicity and (b) nationality.

HMRC do not publish individual level analysis of Income Tax brackets by (a) ethnicity or (b) nationality.

If she will make an assessment of the potential merits of introducing a 25 per cent remittance tax on funds sent to countries that refuse to cooperate with deportations.

The UK imposes taxes based on individual’s residence status. Individuals who are resident in the UK are taxable on their income and gains that arise worldwide. Remitting funds outside of the UK is not generally considered to be a chargeable event for individuals. It should also be noted that funds being remitted will often have already been subject to UK tax, such as income tax, if funded from earnings.

Whether her Department has made an estimate of the potential cost to the public purse of implementing and maintaining a Digital ID system.

The government will cost and publish costings of policies it chooses to introduce in the usual way at fiscal events.

How many people received (a) warnings and (b) punishment for underpaying stamp duty in the last financial year.

HMRC charges penalties in line with its legislation and guidance, according to what behaviour led to an inaccuracy. In 24/25, HMRC issued 116 SDLT inaccuracy penalties.

How many child benefit claims were cancelled because the claimant was found to be living abroad in each year since 2020.

From administrative data, the number of Child Benefit awards terminated by HM Revenue and Customs (HMRC) through compliance activity per year, due to customers no longer meeting the Child Benefit residency criteria is provided below: ·- 2020-21 = 113 awards- 2021-22 = 269 awards- 2022-23 = 762 awards- 2023-24 = 1,030 awards- 2024-25 = 3,017 awardsThe increase in terminated awards over this period has resulted from incremental improvements in HMRC’s utilisation of available data sources. In 2024-25 a proof of concept used Home Office travel data as a risk indicator for when customers may no longer satisfy Child Benefit residence criteria. Following the success of this exercise, the government announced at Autumn Budget 24 investment in an additional 180 welfare counter fraud staff in HMRC to tackle fraud and error in Child Benefit. This is expected to save £350 million over the next five years.

How many employees in her Department earn (a) £100,000 and (b) £166,000 or more per year.

This information is available through the quarterly senior organogram published by the department on gov.uk

How much of the funds raised through the apprenticeship levy was allocated directly to apprenticeships; and how much was redirected to general government revenue in each of the last ten financial years.

The Apprenticeship Levy was introduced in 2017, and is paid by large employers with a total annual pay bill of over £3 million. Their contribution is 0.5% of their total annual pay bill. HMT sets the Department for Education’s budget at each Spending Review. The apprenticeship budget funds all apprenticeship training in England – both existing and new apprenticeships – across all employers. Underspends are returned to HMT as per the Consolidated Budgeting Guidance. While the Apprenticeship Levy is raised UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to apprenticeship spending in England, with the formula applying in the normal way, as set out in the Statement of Funding Policy, when the Department for Education’s budgets change. As set out in the Policy, the Barnett formula applies to overall changes in DfE’s settlement at Spending Reviews. This means it is not possible to identify the Barnett consequentials for individual programmes. It is the devolved governments’ responsibility to allocate their funding in devolved areas as they see fit, including investing in their skills programmes, and they are accountable to the devolved legislatures for those decisions. The table below sets out the apprenticeship budget in relation to Levy receipts once Barnett consequentials are accounted for. This is an indicative profile based on a population-based share, rounded to the nearest £5 million. (£ million)FY 17-18FY 18-19FY 19-20FY 20-21FY 21-22FY 22-23FY 23-24FY 24-25Levy Receipts2,2712,7132,7982,9103,2133,5803,8414,100England Apprenticeship Budget2,0102,2312,4692,4672,4662,5542,5252,771Devolved Governments Funding (notional Barnett allocation beyond 2019-20)425440460460460480500550Difference-16442-131-17287546816779

How many businesses have had a turnover below the VAT threshold in each of the past five years.

The total number of businesses in 2024 is estimated at 5.6 million (see Business population estimates 2024 - GOV.UK, detailed table 2). According to HMRC statistics, there were around 1.3 million business registered for VAT with turnover above the threshold in 2023-34 (see Value Added Tax (VAT) annual statistics - GOV.UK, Table T5). Thus the number of businesses with turnover below the threshold would be approximately the remainder of the 5.6 million, or 4.3 million. It should be noted that some businesses with turnover below the threshold are voluntarily registered for VAT; there were around 0.9 million such businesses in 2023-24.