Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of the Approved Mileage Allowance Payment rate on small and medium-sized enterprises and mobile workers in rural regions, including in Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.
In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.
The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.
Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, the Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to introduce an indexation mechanism linking the Approved Mileage Allowance Payment rate to (a) inflation and (b) motoring cost indices.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.
In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.
The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.
Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, the Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Approved Mileage Allowance Payment rate.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.
In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.
The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.
Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, the Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the risk that people who should qualify for exemption will incur penalties under the Making Tax Digital regime; and what steps she is taking to mitigate that risk.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many HMRC staff are assigned to process Making Tax Digital exemption applications by (a) headcount and (b) full-time equivalent.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC is taking to ensure that digitally excluded people are aware of their right to apply for an exemption.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC will publish regular statistics on exemption applications, outcomes and processing times under Making Tax Digital.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: Lee Pitcher (Labour - Doncaster East and the Isle of Axholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of extending the Great British Summer Savings scheme to include admission to public swimming pools.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This is a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks, helping families enjoy a day out for less. Individual businesses should consult HMRC’s guidance to determine how the rules apply in their circumstances.
Sport, including swimming pools, is not in scope of the relief. This is in line with the decision to focus on a narrower set of eligible activities to ensure the scheme is targeted and financially sustainable.
Many sports facilities which families use already enjoy some form of VAT relief, including many leisure centres and local swimming pools that are operated by local authorities and are out of scope of VAT already. Local authorities are able to reclaim their input VAT when providing sports facilities in leisure centres.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of revenue lost in 2027/28 by permanently reducing VAT to 5% for hospitality businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2027-28
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. A reduction on the scale outlined above would have significant implications for the funding of public services.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the impact of grant-funded voluntary organisations on reducing unresolved tax disputes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The VCS Grant Funding programme complements the Extra Support services HMRC provides and extends the Department’s reach. Grant Funding enables organisations to deliver trusted support to vulnerable and extra support customers with complex or unresolved tax issues. This helps those customers engage with HMRC and understand their obligations. The VCS support contributes to positive outcomes, building confidence, helping resolution and bringing tax affairs up to date. In 2025/26 the Scheme supported 43,000 individual customers.