Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the time taken for Companies House to reconcile their information with HMRC on the ability of new businesses to (a) employ staff, (b) register for PAYE and (c) issue VAT invoices.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the importance of efficient and timely coordination between Companies House and HMRC in supporting the operational readiness of newly incorporated businesses. There is currently a timely data-feed between Companies House and HMRC.
HMRC continue to review how improved data-sharing and increased automation can support new businesses and reduce administrative burdens.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will make an assessment of the potential impact of the time taken by HMRC to issue (a) Corporation Tax Authentication Codes and (b) VAT registration numbers on small businesses; and what steps she is taking to reduce that time.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC aim to process 80% of VAT registration applications within 40 working days of receipt.
They processed 80.25% of VAT registrations within 40 days of receipt in 2022/23, 88.08% in 2023/24 and 94.73% in 2024/25.
Improving day-to-day performance is a key priority for HMRC. The HMRC Transformation Roadmap, published in July, sets out how they will deliver improved services which will mean a better experience for taxpayers, agents, and businesses.
There is no authentication code for Corporation Tax registration. For customers who register with Companies House, registration for Corporation Tax is automated. Information sharing means that HMRC systems create a customer record within 48 hours, without the need for any additional customer input. The customer’s unique taxpayer record is then sent to them by post. When a customer enrols to the Government Gateway for Corporation Tax, an activation code is issued automatically by post.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what performance indicators are used by the HMRC for the registration of (a) VAT registration numbers and (b) corporation tax authentication codes; and how often such targets were met in each of the last three years.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC aim to process 80% of VAT registration applications within 40 working days of receipt.
They processed 80.25% of VAT registrations within 40 days of receipt in 2022/23, 88.08% in 2023/24 and 94.73% in 2024/25.
Improving day-to-day performance is a key priority for HMRC. The HMRC Transformation Roadmap, published in July, sets out how they will deliver improved services which will mean a better experience for taxpayers, agents, and businesses.
There is no authentication code for Corporation Tax registration. For customers who register with Companies House, registration for Corporation Tax is automated. Information sharing means that HMRC systems create a customer record within 48 hours, without the need for any additional customer input. The customer’s unique taxpayer record is then sent to them by post. When a customer enrols to the Government Gateway for Corporation Tax, an activation code is issued automatically by post.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of the effectiveness of IT systems used by (a) Companies House and (b) HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
No comparative assessment has been completed of the IT systems. HMRC and Companies House have a joint commitment on sharing data and analytics to tackle corporate fraud relating to accounting and registration services.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of (a) digitising and (b) streamlining the HMRC process for issuing (i) VAT registration numbers and (ii) corporation tax authentication codes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As part of the Government’s commitment to improve customer experience through reform and modernisation of tax and customs administration, HMRC recently published the Transformation Roadmap. As part of this plan, HMRC will continue to explore opportunities to digitise their services where it is right to do so. This includes the development of a secure and GDPR compliant digital method to communicate VAT registration details with customers. Until this is developed, VAT registration numbers are sent by physical post which minimises the risk of fraud by preventing the interception of VAT numbers by fraudsters.
Similarly, the activation code for a customer to add corporation tax (CT) services to their business tax account must be delivered by a secure process. HMRC are investing in their legacy corporation tax system in order to provide the foundation for future improvements and will work with customers to ensure that they meet the needs of the diverse CT population.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make a comparative assessment of the average processing times for (a) VAT and (b) Corporation Tax registration by (i) HMRC and (ii) other countries in the Organisation for Economic Co-operation and Development.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is not able to provide a comparative assessment of the average processing times for (a) VAT and (b) Corporation Tax registration by (i) HMRC and (ii) other countries in the Organisation for Economic Co-operation and Development (OECD).
The OECD do not publish information of this nature.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her Department has had with the National Cyber Security Centre on (a) long-term contract costs and (b) cybersecurity implications of awarding government-wide data infrastructure work to Palantir Technologies.
Answered by Darren Jones - Minister for Intergovernmental Relations
The National Cyber Security Centre is part of GCHQ, and works closely with the rest of Government to improve the cyber security of critical infrastructure and systems.
It is HMG policy not to comment on the details of the Single Intelligence Account, including contract costs and conversations with HMT.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of the High Income Child Benefit Charge on people earning just over £50,000 per year.
Answered by James Murray - Chief Secretary to the Treasury
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Information on the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge is only available at disproportionate cost.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of the High Income Child Benefit Charge on (a) single-earner and (b) dual-earner households with similar or higher combined incomes.
Answered by James Murray - Chief Secretary to the Treasury
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Information on the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge is only available at disproportionate cost.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge.
Answered by James Murray - Chief Secretary to the Treasury
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Information on the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge is only available at disproportionate cost.