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Written Question
VAT: Registration
Wednesday 4th January 2023

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask His Majesty's Government, further to the Written Answer by Lord Harlech on 14 December (HL3897), what proportion of VAT registration applications received in (1) June, (2) July, (3) August, and (4) September, had been dealt with by 30 November; and what were the equivalent figures in 2021.

Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)

The data requested is not straightforward to provide as HMRC do not report this data internally in the form requested. As such, the information cannot be provided within the timeframe without incurring disproportionate cost.

In July 2022 HMRC came under a significant attack from VAT registration fraudsters and we saw the number of registrations being sent to HMRC increase to unprecedented levels.

To deal with this issue a number of measures were urgently put in place to protect genuine customers and to stop the increase in fraudulent activity. These measures entailed additional security checks that meant that some genuine customers were caught in the new processes to ensure the authenticity of the registration being made. HMRC does understand the frustrations from agents and businesses, and are working to ensure all genuine registrations are processed as quickly as possible.

HMRC aims to turnaround most VAT registrations within 40 working days and is currently meeting that service level agreement, although some cases do take longer due to additional compliance checks or complexity.

Due to the high numbers of new registrations being submitted to HMRC during the summer, HMRC did not always meet the service standard over that time period.


Written Question
VAT: Registration
Wednesday 4th January 2023

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask His Majesty's Government, further to the Written Answer by Lord Harlech on 14 December (HL3897), what representations they have received about the length of time it takes for VAT registrations to be processed.

Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)

In July 2022 HMRC came under a significant attack from VAT registration fraudsters and we saw the number of registrations being sent to HMRC increase to unprecedented levels. To deal with this issue a number of measures were urgently put in place to protect genuine customers and to stop the increase in fraudulent activity. These measures entailed additional security checks that meant that some genuine customers were caught in the new processes to ensure the authenticity of the registration being made. HMRC understands the frustrations from agents and businesses and are working to ensure all genuine registrations are processed as quickly as possible.

Due to the high numbers of new registrations being submitted to HMRC during the summer, HMRC did not always meet their service standard over that time.

HMRC has received representations from individuals and organisations regarding timescales for registering customers for VAT. Where representations are made, HMRC has and will continue to work with individuals and businesses to overcome any challenges they are facing where possible.

HMRC works hard to be open and transparent, particularly with business and agent representative bodies who HMRC meet regularly. HMRC have also, this year, stepped up their transparency by explaining processing times to agents through the HMRC Service Dashboard on GOV.UK.


Written Question
VAT: Registration
Wednesday 14th December 2022

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask His Majesty's Government what is the current delay in HMRC processing new registrations for VAT; and what estimate they have made of the costs of such delays (1) to the businesses and organisations affected, and (2) to the Exchequer.

Answered by Lord Harlech - Lord in Waiting (HM Household) (Whip)

HMRC aims to reply to 80% of VAT registration applications within 40 working days and are currently meeting that aim. However, for more complex applications or those that require additional checks, for example to identify fraudulent applications, this may take longer.

HMRC expects to have significantly reduced the already small proportion of cases that are older than 40 working days by the end of 2022.

HMRC has made no estimate of the cost to business or to the Exchequer of delays in VAT registration processing.


Written Question
VAT: Electronic Government
Wednesday 5th December 2018

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask Her Majesty's Government, further to the Written Answer by Lord Bates on 14 November (HL11158), how many of the compatible software products listed on GOV.UK provide specifically for the VAT Flat-Rate Scheme; and what assessment they have made of the affordability of such software.

Answered by Lord Bates

A number of providers offer products that support the Flat Rate Scheme (FRS). HMRC is currently collating information about those products so it can make this information available on the software choices page.

Low-cost bridging products which work by importing data from other systems can also be used to send the data to HMRC, providing those systems support FRS


Written Question
VAT: Electronic Government
Wednesday 14th November 2018

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask Her Majesty's Government which commercial software available to small businesses using the VAT Flat-Rate Scheme are compliant with Making Tax Digital; and what are the costs of such software to those small businesses.

Answered by Lord Bates

The latest published statistics show that in the last year for which figures are available (2016-17), there were 358,270 businesses operating the VAT Flat Rate Scheme (FRS).

There is no separate impact assessment relating to businesses participating in the FRS. An overall Impact Assessment was published on 1 December 2017.

MTD is intended to help businesses meet their tax obligations as simply as possible, regardless of whether they operate standard or specialist schemes. While HM Revenue and Customs (HMRC) cannot recommend specific software products, they have published details of compatible software on GOV.uk.

This will be updated regularly as more MTD software products become available. HMRC has also published guidance within its recent VAT Notice 7/22 on GOV.UK on how to account for the FRS on software that does not have it as a feature.


Written Question
VAT: Electronic Government
Wednesday 14th November 2018

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask Her Majesty's Government whether they conducted an equality impact assessment on the decision to apply Making Tax Digital to small businesses paying VAT using the VAT Flat-Rate Scheme; and if so, whether they will publish that assessment.

Answered by Lord Bates

The latest published statistics show that in the last year for which figures are available (2016-17), there were 358,270 businesses operating the VAT Flat Rate Scheme (FRS).

There is no separate impact assessment relating to businesses participating in the FRS. An overall Impact Assessment was published on 1 December 2017.

MTD is intended to help businesses meet their tax obligations as simply as possible, regardless of whether they operate standard or specialist schemes. While HM Revenue and Customs (HMRC) cannot recommend specific software products, they have published details of compatible software on GOV.uk.

This will be updated regularly as more MTD software products become available. HMRC has also published guidance within its recent VAT Notice 7/22 on GOV.UK on how to account for the FRS on software that does not have it as a feature.


Written Question
VAT
Wednesday 14th November 2018

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask Her Majesty's Government how many small businesses participate in the VAT Flat-Rate Scheme.

Answered by Lord Bates

The latest published statistics show that in the last year for which figures are available (2016-17), there were 358,270 businesses operating the VAT Flat Rate Scheme (FRS).

There is no separate impact assessment relating to businesses participating in the FRS. An overall Impact Assessment was published on 1 December 2017.

MTD is intended to help businesses meet their tax obligations as simply as possible, regardless of whether they operate standard or specialist schemes. While HM Revenue and Customs (HMRC) cannot recommend specific software products, they have published details of compatible software on GOV.uk.

This will be updated regularly as more MTD software products become available. HMRC has also published guidance within its recent VAT Notice 7/22 on GOV.UK on how to account for the FRS on software that does not have it as a feature.


Written Question
Money Laundering: EU Law
Tuesday 31st July 2018

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask Her Majesty's Government whether the Financial Conduct Authority will have responsibility for enforcing the 5th EU Anti-Money Laundering Directive.

Answered by Lord Bates

The Financial Conduct Authority (FCA) is already responsible for the anti-money laundering (AML) supervision of UK credit and financial institutions and certain other categories of firm specified in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

The Fifth Anti-Money Laundering Directive (5AMLD) contains measures that include bringing new categories of firm into scope of national AML regimes. The Government will consult on its approach to transposing 5AMLD in due course.


Written Question
Money Laundering: EU Law
Tuesday 31st July 2018

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask Her Majesty's Government whether the UK will continue to apply the terms of the 5th EU Anti-Money Laundering Directive in the event of the UK leaving the EU.

Answered by Lord Bates

The Fifth Anti-Money Laundering Directive (5AMLD) entered into force in July of this year, with a transposition deadline of January 2020. This falls during the Implementation Period, and so the UK will transpose this Directive.

The Government will consult on the transposition of 5AMLD in due course.


Written Question
Money Laundering: EU Law
Tuesday 31st July 2018

Asked by: Lord Harris of Haringey (Labour - Life peer)

Question to the HM Treasury:

To ask Her Majesty's Government what progress they have made in implementing the 5th EU Anti-Money Laundering Directive; and when it will come into force.

Answered by Lord Bates

The Fifth Anti-Money Laundering Directive (5AMLD) entered into force in July of this year, with a transposition deadline of January 2020. This falls during the Implementation Period, and so the UK will transpose this Directive.

The Government will consult on the transposition of 5AMLD in due course.