Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the average administrative cost is of collecting VAT from a VAT-registered company.

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.