Companies: VAT
The question
To ask the Chancellor of the Exchequer, what the average administrative cost is of collecting VAT from a VAT-registered company.
Answered by Dan Tomlinson
HMRC calculate annually the cost to collect £1 of VAT. In 2024-25, it cost 0.58 pence, i.e. less than one penny, to collect £1 of VAT on average. This ratio has been broadly stable over recent years.
Cost of Collection - VAT - 5 year Trend from 2020-2021 to 2024-2025 | |||||
| 2020-2021 | 2021-2022 | 2022-2023 | 2023-2024 | 2024-2025 |
pence | pence | pence | pence | pence | |
VAT | 0.63 | 0.52 | 0.54 | 0.58 | 0.58 |
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →