Asked by: Tom Blenkinsop (Labour - Middlesbrough South and East Cleveland)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps HM Revenue and Customs is taking to ensure that public sector bodies do not underpay VAT.
Answered by David Gauke
HM Revenue & Customs (HMRC) deploys its resources according to risk and has a continuous programme of work assuring tax compliance across a range of taxes, including VAT, in the public (and private) sector. Since 2008 there has been a dedicated operational unit responsible for compliance activity in the public sector, and they aim to treat the public sector in the same way as HMRC treats similar customers in the private sector.