questionText: To ask the Chancellor of the Exchequer, what the average administrative cost is of collecting VAT from a VAT-registered company.
answerText: 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. Cost of Collection - VAT - 5 year Trend from 2020-2021 ...
heading: Companies: VAT