Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 1 December to Question 94867 VAT: Repayments, what systems are in place to identify patterns of non-compliance with VAT regulations by different sectors.

HMRC uses an automated risking system to check VAT repayments before they are released for payment. Our risking system automatically checks VAT repayment claims against a range of known risk indicators. These pre-payment checks identify cases where there may be an increased risk of error or fraud.

Cases identified in this way are automatically sent to HMRC caseworkers who will then undertake further checks before deciding whether to authorise the repayment or take alternative action.