Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of families, who had their child benefit reinstated following the review into those who were suspended during the period of data-sharing between HMRC and the Home Office, were found to be eligible as a result of PAYE checks.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As HMRC informed the Treasury Select Committee in its letter dated 14 November 2025, it is unable to completely disaggregate the number of cases where eligibility was confirmed via a subsequent PAYE check from those where evidence was provided by the customer.
The information from the pilot remains HMRC’s best assessment of the effectiveness of the activity using international travel data to reduce error and fraud.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, at what level was the decision made to remove the PAYE checks after the Child Benefit compliance pilot.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As HMRC’s First Permanent Secretary explained to the Treasury Select Committee on 13 January, the PAYE check was removed to streamline the process at an operational level, with a view to employment status being tested as part of any subsequent customer enquiry.
The Department has apologised for removing the PAYE check and the impact on some of its customers of this change.
HMRC has taken swift action to reinstate the check, put things right for affected customers and make further improvements to the process. Lessons learned for the future include strengthening the governance from pilots to business as usual activities.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, on what date (i) HMRC and (ii) ministers in her Department were notified of child benefit claimants incorrectly having benefits stopped due to data sharing with the Home Office.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC use international travel data and other checks to help tackle Child Benefit error and fraud, which is expected to save around £350 million over the next five years.
As HMRC scaled up the work through September and into October 2025, it came to HMRC’s attention in mid-October that the removal of the PAYE check had resulted in some customers being incorrectly included in the compliance campaign. HMRC took swift action to reinstate the PAYE check and apply it retrospectively, including no longer suspending payments at the outset of their enquiries. After understanding the issues, HMRC notified Treasury ministers in late October and have kept them fully informed throughout since.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the press release entitled Child Benefit action to save £350 million from claimants abroad, published on 22 August 2025, and to the correspondence from the Chief Executive and First Permanent Secretary of the Treasury to the Chair of the Treasury Committee of 14 November 2025, if she will make a revised estimate of the potential impact of the Government’s policies on tackling benefit fraud on the cost to the public purse of child benefit.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The projected savings for the residency compliance work are a component of a wider measure announced at Autumn Budget 24 and forms part of the overall forecast for Child Benefit expenditure. The estimate of £350 million over five years for the total saving from this measure will be reviewed and updated as part of a future fiscal event in the usual way and as more data becomes available.
From the c. 23,500 cases, 5,367 enquiries remained open on 31 December 2025. HMRC expects to have concluded these by the end of February 2026.
Resources used to review cases opened between August and October 2025 are those which are already allocated to this exercise through the funding announced at Autumn Budget 2024.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 January 2025 to Question 103948 on Child Benefit: Fraud, if she will make an estimate of the cost to her Department of time spent reviewing old cases.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The projected savings for the residency compliance work are a component of a wider measure announced at Autumn Budget 24 and forms part of the overall forecast for Child Benefit expenditure. The estimate of £350 million over five years for the total saving from this measure will be reviewed and updated as part of a future fiscal event in the usual way and as more data becomes available.
From the c. 23,500 cases, 5,367 enquiries remained open on 31 December 2025. HMRC expects to have concluded these by the end of February 2026.
Resources used to review cases opened between August and October 2025 are those which are already allocated to this exercise through the funding announced at Autumn Budget 2024.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 January 2025 to Question 103948 on Child Benefit: Fraud, when she estimates the c 23,500 cohort will have been fully reviewed.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The projected savings for the residency compliance work are a component of a wider measure announced at Autumn Budget 24 and forms part of the overall forecast for Child Benefit expenditure. The estimate of £350 million over five years for the total saving from this measure will be reviewed and updated as part of a future fiscal event in the usual way and as more data becomes available.
From the c. 23,500 cases, 5,367 enquiries remained open on 31 December 2025. HMRC expects to have concluded these by the end of February 2026.
Resources used to review cases opened between August and October 2025 are those which are already allocated to this exercise through the funding announced at Autumn Budget 2024.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the new 40% first year allowance for for main-rate plant and machinery on the level of regional investment and economic growth.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government has introduced a new 40% first-year allowance (FYA) from 1 January 2026. This is a permanent new feature of the capital allowance regime. This new FYA will allow businesses to deduct much of the cost of their investment in the year they make that investment and lower their tax bill. Crucially, this FYA will be available for assets bought for leasing and for unincorporated businesses which do not benefit from full expensing, increasing the amount of relief that can be claimed in the year of investment.
For future investment, the present value and cost of capital for businesses that claim the new FYA remains broadly the same when considered alongside the changes to writing down allowances also announced at Budget. The expected impacts of this measure and planned monitoring are set out on gov.uk:
Capital allowances: new first-year allowance and reducing main rate writing-down allowances - GOV.UK
This policy is UK-wide and so businesses across all regions of the UK can claim this allowance. We are attracting international investors to opportunities across the country, with the £10 billion of investment commitments announced at our recent Regional Investment Summit.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to answer 98955 of 16 December 2025 on Child Benefit, how many of the 7,781 enquiries which remained open have since been addressed; and what the outcomes were.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In total, of the 23,794 enquiries opened, 1,109 have been determined non-compliant. 5,637 remain open.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what metrics her Department will use to evaluate the success of the new first-year allowance in stimulating growth and productivity.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government has introduced a new 40% first-year allowance (FYA) from 1 January 2026. This is a permanent new feature of the capital allowance regime. This new FYA will allow businesses to deduct much of the cost of their investment in the year they make that investment and lower their tax bill. Crucially, this FYA will be available for assets bought for leasing and for unincorporated businesses which do not benefit from full expensing, increasing the amount of relief that can be claimed in the year of investment.
For future investment, the present value and cost of capital for businesses that claim the new FYA remains broadly the same when considered alongside the changes to writing down allowances also announced at Budget. The expected impacts of this measure and planned monitoring are set out on gov.uk:
Capital allowances: new first-year allowance and reducing main rate writing-down allowances - GOV.UK
This policy is UK-wide and so businesses across all regions of the UK can claim this allowance. We are attracting international investors to opportunities across the country, with the £10 billion of investment commitments announced at our recent Regional Investment Summit.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC is taking to ensure compliance with the new VAT rules for private hire vehicle operators following the closure of access to the Tour Operators Margin Scheme.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is undertaking a range of measures to ensure compliance with the new VAT rules for private hire vehicle operators (“PHVOs”) following the changes made to the Tour Operators’ Margin Scheme (“TOMS”). These measures include publishing a Revenue and Customs Brief (“R&CB”) to explain the legislative changes and to outline the correct processes for operators, working closely with industry stakeholders to address concerns and ensure that operators understand their obligations under the new rules. HMRC’s compliance procedures involve routine audits, risk assessments, and investigations of discrepancies to ensure that all businesses adhere to the VAT requirements. HMRC expects all businesses to comply with their tax obligations, however where they do not HMRC will take steps to correct errors and if necessary use their powers to recover unpaid VAT.