Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of refund processing times by HMRC on (a) cash flow and (b) trading viability for small construction businesses in Surrey Heath constituency.

HMRC recognises the importance of tax repayments in supporting business cash flow and prioritises their processing.

In 2024/25, £156.6 billion in repayments were issued, including £17.3 billion in Income Tax.

For Construction Industry Scheme (CIS) claims, additional checks and increased volumes have extended processing times, with some cases taking longer than expected. HMRC is actively working to improve turnaround times through increased staffing and automation.

HMRC’s correspondence service standard is to respond to 80% of priority post within 15 working days.

Monthly performance against this standard is published at https://www.gov.uk/government/collections/hmrc-monthly-performance-reports

HMRC’s online services include a ‘Where’s my reply’ tool which provides estimated response times. The tool is available here: https://www.gov.uk/guidance/check-when-you-can-expect-a-reply-from-hmrc

HMRC is always looking at ways to improve customer experience. Their recently published transformation roadmap sets out how they will deliver improved services which will mean a better experience for taxpayers, agents, and businesses.