Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, when compliance yield started to be reported by HMRC; and to what extent the different components counting towards the calculation of that yield have varied since compliance yield started to be reported.

HM Revenue and Customs (HMRC) has reported the impact of its compliance work each year since it was formed in 2005. Compliance yield is recorded under five classifications:

• Cash expected
• Revenue loss prevented
• Future revenue benefit (FRB)
• Product and process yield
• Accelerated Payments

These classifications are explained further in HMRC’s Annual Report and Accounts 2016-17, which also sets out (on page 23) the size of each of these components. The document can be found at:

https://www.gov.uk/government/collections/hmrcs-annual-report-and-accounts

Other than the inclusion of ‘Accelerated Payments’ from 2014, the methodology for calculating HMRC’s compliance yield has remained stable since the start of the SR10 period. Since the start of SR15, HMRC has reported FRB in the year in which the FRB has an impact on Exchequer receipts rather than in the year in which HMRC complete compliance interventions.