Corporate report

HMRC's annual report and accounts 2023 to 2024: our accounts and annexes

Published 30 July 2024

Trust Statement

Statement of Revenue, Other Income and Expenditure

For the year ended 31 March	Note	2024 £bn	2023 £bn
Taxes and duties
Income Tax	2.1	286.2	258.0
Value Added Tax	2.2	165.5	166.9
Corporation Tax	2.3	89.6	80.5
Hydrocarbon oils duties	2.4	24.9	25.0
Stamp taxes	2.5	15.0	19.0
Capital Gains Tax	2.6	14.3	17.0
Alcohol duties	2.7	12.5	12.3
Tobacco duties	2.8	9.0	9.4
Other taxes and duties	2.9	42.4	43.8
Total taxes and duties		659.4	631.9
Other revenue and income
National Insurance Contributions	3.1	177.0	175.8
Student Loan recoveries	3.4	4.4	4.0
Fines and penalties	3.4	2.6	2.3
Total other revenue and income		184.0	182.1
Total revenue		843.4	814.4
Less expenditure
Impairment in-year expenditure	4.3	(9.1)	(4.4)
Revenue losses	4.4	(5.6)	(3.8)
Provisions in-year expenditure	6.1	(1.7)	5.5
Total expenditure		(16.4)	(2.7)
Less disbursements
National Insurance Contributions paid and payable to the National Insurance Funds and National Health Services	3.1	(174.9)	(174.8)
Appropriation of revenue to Resource Account	3.4	(21.1)	(21.1)
Student Loan recoveries paid and payable to the Department for Education	3.2	(4.4)	(4.0)
Taxation paid to the Isle of Man	3.5	(0.3)	(0.3)
Total disbursements		(198.7)	(200.2)
Total expenditure and disbursements		(215.1)	(202.9)
Net revenue for the Consolidated Fund		628.3	611.1

There were no recognised gains or losses accounted for outside the above Statement of Revenue, Other Income and Expenditure.

Statement of Financial Position

As at 31 March	Note	2024 £bn	2023 £bn
Non-current assets
Receivables falling due after one year	4	1.2	2.1
Current assets
Receivables	4	32.0	38.7
Accrued revenue receivable	4	144.3	131.1
Total current assets		176.3	169.8
Total assets		177.5	171.9
Current liabilities
Payables	5	(27.2)	(25.8)
Accrued revenue payable	5	(48.4)	(45.6)
Deferred revenue	5	(3.6)	(2.9)
Cash and cash equivalents	5	(1.1)	(1.4)
Total current liabilities		(80.3)	(75.7)
Assets less current liabilities		97.2	96.2
Non-current liabilities
Provision for liabilities	6	(8.3)	(7.5)
Total assets less total liabilities		88.9	88.7
Balance due to/(due from) Consolidated Fund Account	7	88.9	88.7

Sir Jim Harra KCB
Accounting Officer
26 July 2024

The notes to the Trust Statement form part of this statement.

Statement of Cash Flows

For the year ended 31 March 2024	2024 £bn	2023 £bn
Net revenue for the Consolidated Fund	628.3	611.1
(Increase) / decrease in non-cash assets	(5.6)	(14.4)
Increase / (decrease) in non-cash current liabilities	4.9	4.6
Increase / (decrease) in provision for liabilities	0.8	(6.1)
Net cash flow from operating activities	628.4	595.2
Less: Cash paid to the Consolidated Fund	(628.1)	(595.0)
Increase/(decrease) in cash and cash equivalents in this period	0.3	0.2
Net funds as at 1 April (opening cash and cash equivalents balance)	(1.4)	(1.6)
Net funds as at 31 March (closing cash and cash equivalents balance)	(1.1)	(1.4)

Notes to the Trust Statement

Notes to the financial statements provide additional information required by statute and accounting standards to explain a particular feature of the financial statements. The notes also provide explanations and additional disclosure to assist readers’ understanding and interpretation of the financial statements.

1. Statement of accounting policies

1.1. Basis of preparation

The Trust Statement is prepared in accordance with:

• the accounts direction issued by HM Treasury under Section 2 of the Exchequer and Audit Departments Act 1921
• the 2023 to 2024 Financial Reporting Manual (FReM) issued by HM Treasury
• International Financial Reporting Standards (IFRS) adapted or interpreted for the public sector context
• historical cost convention in accordance with the FReM, where assets are recorded at their original value
• accounting policies detailed in subsequent notes

The accounting policies have been developed by HMRC and have been reviewed during 2023 to 2024. These policies have been applied consistently in dealing with items considered material in relation to the accounts.

The Trust Statement is prepared on a going concern basis.

The financial information presented is rounded to the nearest £0.1 billion, except for taxation due to the Isle of Man (note 3.5), revenue losses (note 4.4), and Certificates of Tax Deposit (note 8), which are rounded to the nearest £1 million, due to the much smaller amounts disclosed in these notes.

Basis of accounting

The majority of taxes and duties are accounted for on an accruals basis.

As agreed with HM Treasury the following elements are accounted for on a partial accrual basis as not enough information is known to reliably accrue for the revenue, hence there is no accrued revenue receivable estimate in the Statement of Financial Position:

• Corporation Tax for smaller companies that do not pay by instalments – note 2.3
• Capital Gains Tax reported via Self Assessment – note 2.6
• Inheritance Tax – note 2.9

As agreed with HM Treasury the following elements and some repayments are accounted for on a cash basis:

• VAT Import One Stop Shop (IOSS) – VAT return information reported via IOSS is not available at the time of producing the accounts so this is recognised on a cash basis
• Stamp Duty – note 2.5
• National Insurance classes 1A and 1B – note 3.1
• Student Loans – note 3.2
• Interest on receivables – note 4.1

Accounting for these elements on a cash basis does not have a material impact on revenue.

Significant accounting estimates

The preparation of the financial statements includes the use of estimates and assumptions.

Although the estimates have been prepared using the best information available at the time of producing, actual results may differ from those estimates. The significant accounting estimates with a risk of a material change to the carrying value within the next year in terms of IAS 1, ‘Presentation of Financial Statements’, are:

• Income Tax self assessment Accrued Revenue Receivable – note 4.2.2
• Corporation Tax (Quarterly Instalment Payments) Accrued Revenue Receivable – note 4.2.3
• Tax receivable and accrued revenue receivable impairment – note 4.3
• Provision for liabilities – note 6

1.2. Revenue recognition

Taxes and duties are measured at the fair value of the consideration received or receivable net of repayments. Revenue is recognised as per the FReM, which is in accordance with International Financial Reporting Standard 15 with adaptations applied, as taxes and duties arise from statute and not a contract. Revenue is recognised when:

• a taxable event has occurred (these are described in note 2 for material taxes and duties)
• the revenue can be measured reliably
• it is probable that the economic benefits from the taxable event will flow to HMRC

Revenues are deemed to accrue evenly over the period for which they are due .

1.3. The tax gap

The tax gap is not recognised or measured in the Trust Statement, in accordance with the requirements of the FReM. The tax gap is the difference between the amount of tax that should, in theory, be paid to HMRC and what is actually collected.

Further information on the tax gap can be found in the section ‘Performance analysis’, collecting revenue and keeping the tax gap low.

2. Accounting policies and analysis

2.1. Income Tax

For the year ended 31 March	2024 £bn	2023 £bn
Pay and You Earn and other Income Tax	236.2	209.8
Self Assessment	49.4	47.7
Simple Assessment	0.6	0.5
Total	286.2	258.0

The taxable event for Income Tax (IT) is the earning of assessable income during the taxation period by the taxpayer. Accrued revenue for Self Assessment is required to be estimated, as tax returns reporting taxpayer liabilities are not filed until after the Trust Statement has been published.

IT includes amounts collected on behalf of the Scottish and Welsh devolved administrations, further details of which are set out in note 12.

2.2. Value Added Tax

For the year ended 31 March	2024 £bn	2023 £bn
Gross Revenue	277.7	274.1
Less: revenue payable	(112.2)	(107.2)
Net revenue	165.5	166.9

The taxable event for Value Added Tax (VAT) is the supply of goods and services that attract VAT during the taxation period by the taxpayer. VAT is structured in such a manner that taxpayers are also entitled to claim repayments; hence a breakdown of gross revenue and repayments is disclosed.

Net revenue was negatively impacted in 2023 to 2024 by £2.4 billion due to the net accrued revenue actuals being lower than estimated and a £1.0 billion adjustment for suspended debt.

2.3. Corporation Tax

For the year ended 31 March	2024 £bn	2023 £bn
Total	89.6	80.5

The taxable event for Corporation Tax (CT) is the earning of assessable profit during the taxation period by the taxpayer. The nature of CT legislation and our associated systems mean that accrued revenue is required to be estimated, as tax returns reporting taxpayer liabilities, reliefs or associated tax payments related to the taxation period are not filed until after the Trust Statement has been published.

CT is accounted for on a partial accrual basis, as agreed with HM Treasury, because not enough information is known to reliably accrue for the revenue for smaller companies that do not pay by instalments. There is no accrued revenue receivable estimate in the Statement of Financial Position for these smaller companies.

Estimates for some corporation tax reliefs (CTR), those where there is, or could be, a payable element in excess of negative taxation, are reported in the Resource Accounts. As per the FReM, £11.7 billion (£12.2 billion in 2022 to 2023) was recorded in the Trust Statement as revenue received and as a disbursement from the Trust Statement to the Resource Accounts to fund the CTR expenditure reported in the Resource Accounts.

2.4. Hydrocarbon oils duties

For the year ended 31 March	2024 £bn	2023 £bn
Total	24.9	25.0

The taxable event for Hydrocarbon oils duties is the date of production, date of import or movement of relevant goods out of a duty suspended regime (a regime where, under UK legislation, certain goods benefit from a temporary suspension or reduction of import duties).

2.5. Stamp taxes

For the year ended 31 March	2024 £bn	2023 £bn
Stamp Duty Land Tax	11.7	15.2
Stamp Duty Reserve Tax	2.3	2.5
Stamp Duty	0.9	1.2
Annual Tax on Enveloped Dwellings	0.1	0.1
Total	15.0	19.0

The taxable event for:

• Stamp Duty Land Tax (SDLT) is the purchase of property
• Stamp Duty Reserve Tax and Stamp Duty is the purchase of shares. HMRC can only record Stamp Duty when a stamp is presented to HMRC and hence the duty is recognised on a cash basis
• Annual Tax on Enveloped Dwellings (ATED) is a company owning or part-owning a UK residential property valued at £500,000 or more during a chargeable period. ATED applies to a property that is a dwelling, if all or part of it is used, or could be used, as a residence.

2.6. Capital Gains Tax

For the year ended 31 March	2024 £bn	2023 £bn
Total	14.3	17.0

The taxable event for Capital Gains Tax (CGT) is the disposal of a chargeable asset leading to a taxable gain.

CGT receipts for UK residents are reported in the Trust Statement on a partial accrual basis and repayments are reported on a cash basis in the period the repayment is made.

2.7. Alcohol duties

For the year ended 31 March	2024 £bn	2023 £bn
Wine, cider and perry	4.8	4.7
Spirits	4.1	4.1
Beer	3.6	3.5
Total	12.5	12.3

The taxable event for alcohol duties is the date of production, date of import or date of movement of relevant goods out of a duty suspended regime (a regime where, under UK legislation, certain goods benefit from a temporary suspension or reduction of import duties).

2.8. Tobacco

For the year ended 31 March	2024 £bn	2023 £bn
Cigarettes	6.7	7.1
Hand-rolling tobacco	2.1	2.1
Cigars	0.2	0.1
Tobacco for heating and other	-	0.1
Total	9.0	9.4

The taxable event for tobacco duties is the date of production, date of import or date of movement of relevant goods out of a duty suspended regime (a regime where, under UK legislation, certain goods benefit from a temporary suspension or reduction of import duties).

2.9. Other taxes and duties

For the year ended 31 March	Note	2024 £bn	2023 £bn
Insurance Premium Tax		8.1	7.6
Inheritance Tax		7.4	7.1
Customs duties		4.5	5.8
Apprenticeship Levy		3.9	3.6
Air Passenger Duty		3.9	3.3
Betting and Gaming duties		3.4	3.4
Energy Profits Levy	2.9.1	2.5	4.6
Electricity Generator Levy	2.9.2	1.8	-
Bank Surcharge		1.6	2.7
Climate Change Levy		1.6	2.1
Bank Levy		1.3	1.1
Digital Services Tax		0.7	0.6
Landfill Tax		0.5	0.6
Soft Drinks Industry Levy		0.4	0.4
Aggregates Levy		0.4	0.4
Plastic Packaging Tax		0.3	0.3
Residential Property Developer Tax		0.1	0.2
Diverted Profits Tax		0.1	-
Petroleum Revenue Tax	2.9.3	(0.1)	-
Total		42.4	43.8

Details of taxes and duties are shown below where:

• taxes are reported in the Trust Statement for the first time
• accounting adjustments have impacted net revenue, and
• negative net revenue is reported

2.9.1. Energy Profits Levy

Energy Profits Levy (EPL) was introduced in May 2022 in response to the exceptional profits of oil and gas companies operating in the UK and on the UK Continental Shelf. Profit levels in the sector had increased due to the rise in oil and gas prices.

A large proportion of EPL revenue relates to an accrued revenue receivable estimate that contains an assumption of oil and gas prices for the following year. The 2022 to 2023 estimate was overstated due to a 35.5% drop in the gas price assumption, impacting 2023 to 2024 net revenue by £0.6 billion.

2.9.2. Electricity Generator Levy

The Electricity Generator Levy (EGL) is a temporary charge on exceptional receipts exceeding £10 million in an accounting period generated from the production of wholesale electricity.

The levy is effective from 1 January 2023 to 31 March 2028. The taxable event for EGL is the earning of exceptional receipts during the taxation period by the taxpayer.

No revenue was recorded in 2022 to 2023 as Royal Assent authorising the legislation was granted after the reporting date.

2.9.3. Petroleum Revenue Tax

Petroleum Revenue Tax (PRT) is a ‘field-based’ tax charged on the profits arising from individual oil and gas fields that were approved for development before 16 March 1993. The rate of PRT was permanently set at 0% effective from 1 January 2016 but it has not been abolished so that losses (such as losses arising from decommissioning fields liable to PRT) can be carried back against past PRT payments, with HMRC making a provision for this.

3. Other revenue, income and disbursements

3.1. National Insurance Contributions

For the year ended 31 March	2024 £bn	2023 £bn
National Insurance Fund Great Britain (NIF GB)	139.4	129.8
National Insurance Fund Northern Ireland (NIF NI)	3.0	2.8
National Health Services (NHS)	34.6	43.2
Total National Insurance Contributions (NICs)	177.0	175.8
Less: NIC expenditure	(2.1)	(1.0)
NICs due to NIF and NHS	174.9	174.8

National Insurance Contributions (NICs) are collected by HMRC on behalf of the National Insurance Funds (NIF) of Great Britain and Northern Ireland and the National Health Services (NHS) for England, Wales, Scotland and Northern Ireland. They are payable to the NIF and the NHS when received and not when accrued.

NICs 1A and 1B information reported via P11D and P11D(b) forms is not available at the time of producing the accounts so these are recognised on a cash basis.

3.2. Student Loan recoveries

For the year ended 31 March	2024 £bn	2023 £bn
Student Loan recoveries	4.4	4.0
Student Loan recoveries paid and payable to the Department for Education	(4.4)	(4.0)
Net revenue	-	-

Student Loan repayments are collected on behalf of and paid to the Department for Education (DfE). The majority are collected through PAYE with an element collected through Self Assessment. Any difference between the amount of Student Loan repayments received and the cash paid to the DfE is shown as a payable (refer to note 5 – other taxes and duties).

3.3. Fines and penalties

For the year ended 31 March	2024 £bn	2023 £bn
Fines and penalties	2.6	2.3

This consists of income arising from the levying of tax fines and penalties. Penalties relating to NICs are accounted for as NIC income and paid over to the National Insurance Fund.

3.4. Appropriation of revenue to the Resource Accounts

For the year ended 31 March	2024 £bn	2023 £bn
Corporation tax relief	11.7	12.2
Personal tax credits	7.4	8.9
Total appropriation of revenue to Resource Accounts	19.1	21.1

The expenditure relating to personal tax credits (PTC) and some corporation tax reliefs (CTR) is accounted for in the Resource Accounts.

The Trust Statement is responsible for the payment of PTC and CTR through the tax collection and repayment process. As per the FReM, these amounts are recorded in the Trust Statement as revenue received and as a disbursement to Resource Accounts.

The reduction in PTC reflects the migration of claimants to Universal Credit, which is accounted for in the Department for Work & Pensions’ accounts.

3.5. Taxation due to the Isle of Man

Under the Isle of Man Act 1979, a revenue sharing arrangement exists between the UK and the Isle of Man (IoM). Detail of the revenue sharing arrangement was agreed on 24 March 2020, superseding all previous agreements. Certain tax revenue streams, known as ‘common duties’ are pooled and then shared on an agreed basis. The IoM is entitled to the share of common duties collected in the UK and the IoM that are attributable to goods consumed and services supplied in the island. If the IoM agreed share is greater than revenues collected and retained by the IoM, this results in the UK making payment to the IoM to ensure the IoM receives the correct share. This is shown as a disbursement. Where the IoM collects and retains more than agreed under the sharing arrangement, the IoM makes payment to the UK. This is shown as other revenue and income.

For the year ended 31 March 2024 net payments to the IoM totalled £295 million (£304 million net payments for the period 1 April 2022 to 31 March 2023).

4. Receivables, accrued revenue receivable, impairment and losses

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Receivables £bn As at 31 March 2024	Accrued revenue receivable £bn As at 31 March 2024	Total £bn As at 31 March 2024	Receivables £bn As at 31 March 2023	Accrued revenue receivable £bn As at 31 March 2023	Total £bn As at 31 March 2023
Non-current assets
Receivables due after one year:
Inheritance Tax	2.2	-	2.2	2.1	-	2.1
Non-current assets after impairment	2.2	-	2.2	2.1	-	2.1
Less impairment (note 4.3)	(1.0)	-	(1.0)	-	-	-
Total non-current assets after impairment	1.2	-	1.2	2.1	-	2.1
Current assets
Receivables and ARR due within one year:
Income Tax	12.6	58.4	71.0	11.9	48.7	60.6
Value Added Tax	18.3	46.1	64.4	20.9	46.2	67.1
Corporation Tax	6.7	14.1	20.8	6.2	10.1	16.3
National Insurance Contributions	7.1	18.6	25.7	6.9	17.4	24.3
Other taxes and duties	13.9	9.3	23.2	12.0	10.2	22.2
Current assets before impairment	58.6	146.5	205.1	57.9	132.6	190.5
Less impairment (note 4.3)	(26.6)	(2.2)	(28.8)	(19.2)	(1.5)	(20.7)
Total current assets after impairment	32.0	144.3	176.3	38.7	131.1	169.8
Total assets before impairment	60.8	146.5	207.3	60.0	132.6	192.6
Less impairment (note 4.3)	(27.6)	(2.2)	(29.8)	(19.2)	(1.5)	(20.7)
Total assets after impairment	33.2	144.3	177.5	40.8	131.1	171.9

4.1. Receivables

Receivables represent all taxpayer liabilities that have been established, due or overdue, for which payments have not been received at the Statement of Financial Position date. Accrued interest on interest-bearing receivables is not available at the time of producing the accounts so this is recognised on a cash basis.

Further information on receivables can be found in the section ‘Performance analysis’, ‘Receivables’

4.2. Accrued revenue receivable

Accrued revenue receivable (ARR) represents amounts of taxes and duties where the taxable event has occurred but the tax return has not been received from the taxpayer by the end of the reporting period. For taxes where HMRC has received returns since the end of the reporting period, the department used this information to support its valuation of ARR. For those taxes where HMRC is yet to receive taxpayer returns, principally Income Tax Self Assessment (ITSA) and Corporation Tax (CT), HMRC has estimated ARR. Due to the nature of tax legislation, ITSA and CT are the most difficult taxes to estimate.

Tax forecasting models are used to produce the ITSA and CT ARR estimates, and take into consideration the economic assumptions prepared for the March 2024 Budget and the Economic and Fiscal Outlook published by the Office for Budget Responsibility (OBR) in March 2024.

These estimates have been prepared using the judgement of professional departmental economists and statisticians.

4.2.1. Uncertainty around the ARR estimates

Conclusions around estimation uncertainty are based on evidence from the performance of our estimation models over previous years, changes to reflect the March 2024 Budget and the Economic and Fiscal Outlook published by the OBR in March 2024.

Actual outcomes could differ from the estimates used, due to the areas of uncertainty involved.

Each year HMRC reviews the performance of its estimation models. Last year, the ARR underestimation was £0.7 billion (0.1% of 2022 to 2023 total revenue).

The process for each significant estimate is described in more detail below:

4.2.2. Income Tax self assessment

Income Tax Self Assessment (ITSA) ARR is estimated to be £31.4 billion this year (£25.3 billion in 2022 to 2023), which is included in the total Income Tax ARR of £58.4 billion (£48.7 billion in 2022 to 2023) in note 4.

The SA regime involves long filing and payment lags, so the ARR estimate is based on forecast liabilities as the corresponding SA returns for 2023 to 2024 are not due until 31 January 2025.

The SA ARR estimate is the total of the forecast liabilities for 2023 to 2024 less:

• any payments already received by 31 March 2024
• Unpaid Payment on Account 1 liabilities relating to 2023 to 2024

The estimate is driven by the March 2024 Budget forecast and the underlying economic determinants are based on the OBR central forecast rather than by receipts data.

There are several key economic factors that underpin these estimates and are the main contributors to the increase in the ARR estimate for 2023 to 2024. These include self-employed income growth, dividend income growth and Average Effective Tax Rates (AETR).

Sensitivity analysis has been produced to demonstrate the impact of changes to key assumptions used in the current estimate, and the results of those considered high-risk are shown in the table below.

Based on historic data, likely changes in key assumptions are not expected to exceed the percentages within the table below.

Impact on ITSA ARR on varying key economic factors

Key assumption (percentage point change)	Increase £bn	Decrease £bn
AETR on NSND income of mainly SA individuals (+/-0.6%) (note 1)	1.8	(1.8)
Self-employed income growth (+/-6%)	1.6	(1.6)
Dividend AETR of mainly SA individuals (+/-3%) (note 1)	0.9	(0.9)
NSND SA liability of mainly PAYE individuals (+/-43%) (note 2)	0.8	(0.8)
Deduction rate on PAYE income of mainly SA individuals (+/-0.55%) (note 1)	(0.6)	0.6

Note 1: Mainly SA individuals are those within SA who have some Non-Saving Non Dividend (NSND) income from non PAYE sources such as self-employed income, property income, foreign income or do not have a PAYE source

Note 2:  Mainly PAYE individuals are those within SA whose NSND income is entirely from PAYE sources (employment/pension)

4.2.3. Corporation Tax

Corporation Tax (CT) ARR is £14.1 billion (£10.1 billion in 2022 to 2023) which includes an estimated amount of £8.9 billion (£6.3 billion in 2022 to 2023). HMRC has a number of taxpayer liabilities which have been postponed pending finalisation of enquiries. HMRC undertakes a review of large postponed cases for Corporation Tax to ensure that revenue that meets the revenue recognition criteria, as set out in note 1.2, is recognised in the accounts. As a result, an amount of £3.1 billion (£2.3 billion in 2022 to 2023) has been included in ARR.

As with SA, the filing of CT returns and related payments are subject to a considerable lag and relate to the accounting periods of taxpayers rather than the current taxation period. Since there is less outturn data available, the ARR estimate is subject to uncertainty.

The key drivers of the ARR estimate are outturn CT receipts and returns received to date and a series of assumptions. The assumptions used are needed to estimate the total amount of accrued tax liabilities arising from profits generated in the taxation period and from CT returns that relate to 2023 to 2024 but are not available at the point of estimation.

Separate ARR estimates have been calculated for onshore and North Sea oil and gas (offshore) companies because of differences in how these companies operate and, in particular, the number of instalments paid. Further detail can be found below.

Onshore companies

CT for large and very large onshore companies is paid in 4 Quarterly Instalment Payments (QIPs). CT ARR has been estimated where between one and four QIPs have been received using a model that forecasts companies’ CT liabilities based on the number and value of QIPs received by a given date.

The key assumptions used in this modelling are the proportion of CT that is paid late and/or overpaid and the proportion of CT liabilities paid in each quarterly instalment. These assumptions are informed by looking at historic trends in outturn data. CT is assumed to accrue evenly throughout the companies’ accounting periods.

For accounting periods where no QIPs have been received, ARR has been estimated using OBR’s March 2024 Corporation Tax forecast.

As agreed with HM Treasury, Corporation Tax for smaller companies that do not pay by instalment are accounted for on a partial accrual basis, as a reliable ARR estimate for these companies cannot be formed.

North Sea oil and gas companies

North Sea companies pay their CT liabilities in Three Instalment Payments (TIPs). A similar methodology to that of onshore companies is used for calculating the estimate.

However, most TIPs relating to liabilities from 1 January to 31 March are not due in sufficient time to be included in the TIPs estimation model and these amounts are therefore estimated.

This year’s estimate is based on the OBR’s March 2024 North Sea taxes forecast which shows a decrease in receipts from last year as a result of energy prices continuing to fall back from their highs in 2022 following Russia’s invasion of Ukraine. This is a contributing factor to the decrease in the ARR estimate for North Sea companies from 2022 to 2023.

Impact on CT ARR of varying key economic factors

Sensitivity analysis has been produced to demonstrate the impact of changes to key assumptions used in the current estimate and the results are shown in the table below. Based on recent historic data, changes in key assumptions are likely to fall within the ranges in the table below.

Key Assumption (percentage point change)	Increase £bn	Decrease £bn
CT liability growth (+/-10% points)	0.4	(0.4)
Late payments (+/-1% point)	0.2	(0.2)
Overpayments (+/-1% point)	(0.3)	0.3
Proportion of companies’ CT liabilities paid with in-year QIPs (+/-1% point)	(0.4)	0.6

4.2.4. Value Added Tax

Value Added Tax (VAT) ARR is £46.1 billion (£46.2 billion in 2022 to 2023). A large amount of the VAT ARR is based on actual return data and is not therefore subject to significant estimation uncertainty. Returns submitted in June and July relating to the current reporting period are not available at the time of producing the ARR so an estimate is produced by calculating the value of these returns as a proportion of the total value of the returns in the preceding period last year. Those proportions are then applied to the value of returns for the corresponding period this year.

The ARR estimate for 2023 to 2024 is £5.9 billion representing 2% of total VAT gross revenue. If this proportion increased (decreased) by 0.5% points the impact on revenue would be +/(-) £1.4 billion.

4.3. Impairment of receivables and accrued revenue receivable

	Impairment of Receivables £bn As at 31 March 2024	Impairment of accrued revenue receivable £bn As at 31 March 2024	Total £bn As at 31 March 2024	Total £bn As at 31 March 2023
Balance as at 1 April	19.2	1.5	20.7	16.3
Impairment in-year expenditure	8.4	0.7	9.1	4.4
Balance as at 31 March	27.6	2.2	29.8	20.7

Receivables and accrued revenue receivable (ARR) in the Statement of Financial Position are reported after impairment to reflect an amount that is likely to be collected. This amount is estimated based on HMRC’s analysis of existing receivables, debt and ARR collection rates.

4.3.1. Impairment calculation and analysis

The FReM does not require HMRC to determine impairments in accordance with IFRS 9, as the standard relates to financial instruments, and taxes and duties arise from statute and not a contract. However, impairments have been measured applying the simplified expected credit loss (ECL) model set out in IFRS 9.

The ECL model estimates the future recoverability of receivables and ARR based on their age and current debt recovery rates, accepting that the non-payment risk associated with tax debt increases with age.

HMRC has reviewed a number of scenarios and determined that current period recovery rates are reasonable in estimating future recoveries.

HMRC has improved the accuracy of the impairment estimate by individually impairing receivables considered unlikely to be collectable by 100%, and by expanding the age categories to include receivables where collection is currently deferred. These receivables were impaired at a lower rate in 2022 to 2023 whereas this year we found that the 100% rate better reflects the likelihood of collection. This is to be taken into consideration when comparing to previous reporting periods.

Receivables that are unlikely to be collected will be reported as revenue losses once the outstanding charges are formally closed and no longer reported in the receivables balance.

The table below provides an age breakdown of the current scenario:

Age	Gross Balance £bn	Impairment Rate %	Impairment £bn
Not impaired (note 1)	2.2	0.0	0.0
Accrued revenue receivable	146.5	1.5	2.2
Receivables not overdue	6.8	5.0	0.4
Receivables less than 1 year overdue	24.4	23.0	5.6
Receivables 1 to 2 years overdue	8.5	54.0	4.6
Receivables more than 2 years overdue	12.2	85.0	10.4
Debts considered unlikely to be collectable	6.7	100.0	6.7
Total	207.3	14.4	29.9

Note 1: Items not impaired are predominantly receivables owed from the National Insurance Fund.

HMRC has reviewed the Bank of England’s Monetary Policy report, published in May 2024, to consider current and forecast economic indicators, and studied the effects on debt collection and losses of the global recession in the years following the financial crisis in 2008.

The impairment of receivables rate (excluding ARR) is 45.4% in 2023 to 2024 (32% in 2022 to 2023). The increase is due to receivables unlikely to be collectable and an increase in receivables older than 12 months which attract a higher impairment rate. The total impairment rate is 14.4% (10.6% in 2022 to 2023).

Sensitivity Analysis

HMRC recognises that future economic conditions remain uncertain and has produced sensitivity analysis to demonstrate the possible outcomes if the impairment scenario were to differ from the current scenario.

Potential impact on the impairment balance

Scenario	Change to Impairment £bn
Impairment rate increase 1%	2.1
Impairment rate decrease 1%	(2.1)

4.4. Revenue losses

For the year ended 31 March	Remissions (2024) £m	Write-offs (2024) £m	Total (2024) £m	Remissions (2023) £m	Write-offs (2023) £m	Total (2023) £m
Income Tax	144	990	1,134	216	439	655
Value Added Tax	106	2,518	2,624	62	1,742	1,804
Corporation Tax	22	360	382	13	268	281
National Insurance Contributions	34	705	739	30	343	373
Fines and penalties	177	421	598	206	283	489
Other remissions and write-offs	84	55	139	69	79	148
Total revenue losses	567	5,049	5,616	596	3,154	3,750

Revenue losses are made up of remissions and write-offs. Remissions are debts capable of recovery, but HMRC has decided not to pursue the liability on the grounds of value for money.

Write-offs are debts that are considered to be irrecoverable because there is no practical means for pursuing the liability. The vast majority of revenue losses are driven by individual and business insolvencies.

HMRC write off debt from the statement of financial position when a customer is formally declared insolvent. On 31 March 2024, HMRC had £4.1 billion of debt that may go into formal insolvency. Once in formal insolvency, on average the dividend payment HMRC eventually receives is 5 pence in the pound. In 2023 to 2024 we received £162 million in such dividend payments.

For certain taxes, only a partial split between remissions and write-offs is known. Where information is unavailable, the percentage split of the known element is applied to the remainder to calculate a total estimated remission and write-off split.

Taxpayers can satisfy their inheritance tax with certain categories of property rather than cash. HMT set an annual limit of £40 million for the amount of tax that can be satisfied by acceptance in lieu. This is treated as a tax loss and is included in other remissions and write-offs, as no revenue will flow to the consolidated fund. For 2023 to 2024, tax satisfied by acceptance in lieu was £23 million.

Fines and penalties relating to National Insurance contributions (NICs) are accounted for as NICs revenue losses.

Further information on losses can be found in the section ‘Performance analysis’, ‘Collecting debt’.

Revenue losses – cases more than £10 million

For the year ended 31 March 2024, there were 31 cases (24 cases as at 31 March 2023) where the loss exceeded £10 million, totalling £1.2 billion (£833 million as at 31 March 2023). Details are shown below:

There were 28 write-offs (21 write-offs and one remission as at 31 March 2023) relating to Insolvency totalling £934 million (£579 million as at 31 March 2023).

There were no cases relating to Missing Trader Fraud (one write-off case of £38 million as at 31 March 2023).

There were 3 bulk remissions (1 case as at 31 March 2023) totalling £227 million (£216 million as at 31 March 2023). Details are shown below:

There was a bulk remission for Self Assessment penalties of £189 million (£216 million as at 31 March 2023), where it had been identified customers were no longer liable for SA or were no longer self-employed and had ceased to trade. HMRC decided not to pursue on the grounds of value for money.

There was a one-off remission of £15 million due to an official error in the transfer of funds relating to Anti-Money Laundering Supervision income from the Trust Statement to the Resource Account.

5. Payables, accrued revenue payable, deferred revenue, and cash and cash equivalents

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Payables £bn As at 31 March 2024	Accrued revenue payable £bn As at 31 March 2024	Deferred revenue £bn As at 31 March 2024	Total £bn As at 31 March 2024	Payables £bn As at 31 March 2023	Accrued revenue payable £bn As at 31 March 2023	Deferred revenue £bn As at 31 March 2023	Total £bn As at 31 March 2023
Income Tax	5.2	1.3	-	6.5	4.5	1.1	-	5.6
Value Added Tax	1.6	21.4	-	23.0	1.5	19.5	-	21.0
Corporation Tax	13.7	4.7	0.2	18.6	11.7	3.5	0.2	15.4
National Insurance Contributions	0.8	20.8	-	21.6	1.0	21.3	-	22.3
Other taxes and duties	2.8	0.2	3.4	6.4	2.9	0.2	2.7	5.8
Payments on account	3.1	4.4	-	3.1	4.2	-	-	4.2
Current liabilities before cash and cash equivalents	27.2	48.4	3.6	79.2	25.8	45.6	2.9	74.3
Cash and cash equivalents	1.1	4.4	-	1.1	1.4	-	-	1.4
Total current liabilities	28.3	48.4	3.6	80.3	27.2	45.6	2.9	75.7

There are no liabilities in the table above which fall due after one year.

5.1. Payables

Payables are amounts due to customers by HMRC at the end of the reporting period, but for which payment has not been made. Other payables are amounts mainly due to the Resource Accounts that have not been transferred at the reporting period end date. Payments on account are taxpayer credit amounts that have not been allocated to a tax charge at the reporting period end date.

5.2. Accrued revenue payable

Accrued revenue payable (ARP) is recognised for:

• amounts due to VAT traders that have an established revenue repayment claim relating to the financial year, but the date the claim is received is after the end of the reporting period. It is necessary to estimate VAT ARP of £4.3 billion as returns submitted in June and July relating to the current financial year are not available at the time of producing the estimate
• amounts of receivables and accrued revenue receivable that when received will be passed to a third-party after adjusting for expenditure, for example National Insurance contributions due to the National Insurance Funds and National Health Services
• amounts in respect of Corporation Tax, Income Tax and other small taxes likely to be repayable by HMRC pending finalisation of taxpayer liabilities accruing over the taxation period, and for expected Corporation Tax overpayments.

Estimates have been made to support the ARP balances where tax returns reporting taxpayer liabilities or associated tax repayments related to the taxation period are not filed until after the Trust Statement has been published. Each year HMRC reviews the performance of its estimation models. Last year, the ARP underestimation was £1.5 billion (0.2% of 2022 to 2023 total revenue).

5.3. Deferred revenue

Deferred revenue includes taxes and duties paid in the current year which relate to future accounting periods.

5.4. Cash and cash equivalents

This reflects the net position of cash in HMRC bank accounts and payments that have been authorised for issue but the money has not cleared through the banking system as of 31 March. The balance does not represent an overdraft position.

6. Provision for liabilities and contingent liabilities

Provisions are recognised when HMRC has a present legal or constructive obligation as a result of a past event, it is probable that HMRC will be required to settle that obligation and an amount can be estimated reliably.

Contingent liabilities relate to legal cases for which the outcome is uncertain or HMRC consider that there is only a possible rather than probable likelihood that a payment will be required and/or the amount cannot be measured reliably.

Provision for liabilities

	Legal claims £bn	Oil and gas field decommissioning £bn	Total 2024 £bn	Total 2023 £bn
Balance as at 1 April	3.0	4.5	7.5	13.6
Provided in the year	0.1	1.8	1.9	1.2
Provision not required written back	(0.2)	-	(0.2)	(6.7)
Provision utilised in the year	(0.3)	(0.6)	(0.9)	(0.6)
Balance as at 31 March	2.6	5.7	8.3	7.5

Analysis of expected timing of cash flows

	Legal claims £bn	Oil and gas field decommissioning £bn	Total 2024 £bn
Amounts payable within 5 years	2.6	2.3	4.9
Amounts payable after 5 years	–	3.4	3.4
Balance as at 31 March	2.6	5.7	8.3

6.1. Provisions in-year expenditure

	Legal claims £bn	Oil and gas field decommissioning £bn	Total 2024 £bn	Total 2023 £bn
Total provided in the year	0.1	1.8	1.9	1.2
Provision not required written back	(0.2)	-	(0.2)	(6.7)
Net movement increase/(decrease)	(0.1)	1.8	17	(5.5)

6.2. Legal claims

Provision for liabilities

HMRC is involved in a number of legal and other disputes which can result in claims against HMRC by taxpayers. It is in the nature of HMRC’s business that a number of these matters may be the subject of litigation over several years. The department, having taken legal and other specialist advice, has established a provision having regard to the relevant facts and circumstances of each matter in accordance with accounting requirements. Due to an element of uncertainty in the estimate of the provision, the ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of litigation proceedings, investigations and possible settlement discussions. Provisions were reviewed during 2023 to 2024; discounting has not been applied on the basis of materiality.

Contingent liabilities

Contingent liabilities are disclosed at a value made in accordance with a best estimate based on the information available at the end of the reporting period. Those estimates are subject to change and, for some legal cases, are inherently uncertain. Regular review of the contingent liabilities leads to the recognition of new cases where appropriate. Existing cases may also be revalued, recognised as provisions, or removed from the contingent liability disclosures (i.e. where the probability that HMRC will be required to make a payment to settle the liability is now considered to be remote).

As at 31 March 2024, HMRC has 8 cases estimated to have a value of £5.4 billion (compared to 8 cases with an estimated value of £4.1 billion as at 31 March 2023) where the maximum potential tax repayment, before losses, capital allowances and other tax reliefs, is over £100 million. Each case may include a lead case with follower claimants and cover a range of taxes and duties, including Corporation Tax, Income Tax and VAT.

Further claimants may opt to follow a lead case but are not yet known to HMRC or the Courts. Wider adoption claims of this nature are difficult to quantify with sufficient reliability and therefore deemed to fall outside of criteria in the relevant accounting standards. They are not recognised in the Accounts or disclosed in these notes.

6.3. Exchequer liabilities arising from oil and gas infrastructure

There are 2 taxes levied on companies exploring and producing oil and gas from the UK Continental Shelf (UKCS): Petroleum Revenue Tax (PRT) and offshore Corporation Tax (CT), the latter comprising of 3 elements: Ring-fenced Corporation Tax, Supplementary Charge and the Energy Profits Levy.

The legislation governing the losses from decommissioning costs (Oil Taxation Act 1975) allows participators in an oil and gas field liable to PRT to carry-back decommissioning losses almost indefinitely against profits it has previously made from the field, or which previous participators in the field have made. This may result in the repayment of PRT. With respect to offshore CT, the Corporation Tax Act 2010 allows for a company’s decommissioning loss to be carried back against its own historical profits dating back to April 2002. Again, this may result in a repayment of offshore CT.

Provision for oil and gas field decommissioning

The provision for tax repayments is an estimate based on the appropriately discounted sum of all forecast decommissioning repayments over the expected lifetime of the North Sea oil and gas fields. Repayment profiles are derived from the output produced by HMRC’s North Sea Forecasting Model developed at the individual company and field level. There has been no significant change in the model since last year.

A provision of £5.7 billion has been reported in 2023 to 2024 based on the estimated tax repayments of PRT £2.1 billion (£1.3 billion in 2022 to 2023) and offshore CT £3.6 billion (£3.2 billion in 2022 to 2023) by HMRC to companies over the period to 2067 due to losses from decommissioning expenditure.

The key determinants of the provision estimate are:

• future decommissioning costs from the North Sea Transition Authority’s (NSTA) latest UKCS Stewardship Survey
• oil and gas prices, expenditure and production from the Office for Budget Responsibility (OBR), Department for Energy Security and Net Zero (DESNZ) and NSTA
• discount rates from HM Treasury
• the US Dollar/Sterling exchange rate from the OBR

There has been a £1.2 billion increase in the overall provision since last year. The main causes of the increase were lower oil and gas price assumptions, leading to lower company profits, therefore increasing the provision. This has been partially offset by higher discount rates and the utilisation of the provision for 2023 to 2024.

The provision utilised in-year is the tax repayments in 2023 to 2024 due to decommissioning expenditure.

Uncertainty around the estimate of the provision

There is inherent uncertainty surrounding forecasting oil and gas revenues over 30+ years ahead.

The largest impact on the size of the provision, and biggest source of uncertainty in estimating it, is quantification of future decommissioning costs. Annually, the NSTA estimates the total costs of remaining oil and gas decommissioning for the UKCS, including newly sanctioned projects, and changes to the portfolio of potential, as yet unsanctioned projects.

The provision included in the Trust Statement is calculated using the NSTA’s estimate for remaining decommissioning costs due to be published in July 2024. A 10% increase in the decommissioning cost estimate would increase the provision to £6.1 billion. Similarly, a 10% reduction would decrease the provision to £5.4 billion.

A major economic determinant which drives the provision are oil and gas prices. The model has utilised DESNZ long-term projections. Compared to the baseline oil and gas price forecasts a 10% increase (decrease) would decrease (increase) the provision by approximately £0.4 billion (£0.5 billion).

The provision is also impacted by discount rates and foreign exchange rates as follows:

• an increase in the discount rate will reduce the present value of the provision. An overall increase in the discount rates of 50 basis points will decrease the overall provision by £0.2 billion. The same decrease in discount rates would increase the provision by £0.3 billion
• as oil prices are denominated in US Dollars, the overall provision is impacted by changes in the US Dollar/Sterling exchange rate. A 10-cent appreciation in the US Dollar gives rise to higher Sterling oil prices resulting in a £0.2 billion decrease in the provision. A 10-cent depreciation of the Dollar results in a £0.3 billion increase in the required provision

7. Balance on Consolidated Fund Account

Movements on Consolidated Fund account

	2024 £bn	2023 £bn
Balance due to/(due from) Consolidated Fund as at 1 April	88.7	72.6
Net revenue for the Consolidated Fund	628.3	611.1
Less amount paid to Consolidated Fund	(628.1)	(595.0)
Balance due to/(due from) Consolidated Fund	88.9	88.7

8. Certificates of tax deposit

Under the Certificate of Tax Deposit (CTD) scheme, HMRC previously accepted deposits from individuals, businesses and trustees liable for certain taxes. Relevant taxes can be found at pay your tax bill by Certificate of Tax Deposit.

HMRC administers the CTD scheme on behalf of HM Treasury. The National Loans Fund (NLF) account includes the CTDs held by the NLF as at 31 March. More information on the NLF account can be found at HMT central funds.

Since 23 November 2017, the CTD scheme has been closed for new purchases but existing certificates continued to be honoured up until 23 November 2023. The value redeemed for the year ended 31 March 2024 totalled £240 million (£142 million in 2022 to 2023).

9. R.N. Limited

R.N. Limited is a registered company that administers, on behalf of HMRC, the holding of charges securing tax debts owed to HMRC. These tax debts are reflected in the Trust Statement. The company’s parent undertaking and controlling party is HMRC.

R.N. Limited also holds on behalf of HMRC, assets that have been assigned to HMRC in settlement of tax debts. These are not recognised in the Trust Statement until realised. There is no designation order requiring R.N. Limited’s financial statement to be consolidated within HMRC’s Accounts. R.N. Limited’s accounts can be viewed at Companies House.

10. Third party assets

The department holds cash and other assets which have been seized in relation to ongoing legal proceedings. These assets do not belong to the department and do not form part of these accounts although, where seized assets are forfeited without legal proceedings, proceeds are recognised as penalty income.

The department holds amounts in relation to businesses operating under the terms of the Northern Ireland (NI) protocol who have registered with HMRC to use the One Stop Shop (OSS) scheme to report and pay VAT due to the EU. This entails the making of payments to HMRC who will then forward any relevant amounts to the EU. The scheme was implemented on 1 July 2021 and covers goods sold from NI to consumers in the EU.

11. Related party transactions

Due to the nature of HMRC’s business, we have a large number of transactions, relating to taxation income, with other government departments and other central government bodies.

No Board member, key manager or other related party has undertaken material transactions (meaning transactions of £0.1 million or more) with the department during the year.

12. Devolved taxes

12.1. Scottish Income Tax

The Scottish Parliament has the power to set and change its own tax rate bands and limits, introduce new ones, and include a zero rate, to all non-savings non-dividend (NSND) Income Tax paid by Scottish taxpayers (Scotland Acts 2012, 2016). These powers were fully effective from 6 April 2017.

Starting from the 2018 to 2019 tax year and continuing up to the 2023 to 2024 tax year there have been 5 Income Tax bands in Scotland with different limits and rates applied to each. These range from the Starter rate of 19% up to the Top rate of 46%. This means that a Scottish taxpayer can pay a different amount of total Income Tax compared to someone from England and Northern Ireland earning the same amount of income. You can find more information on the Scottish Income Tax rates for the 2023 to 2024 tax year can be found on GOV.UK.

12.2. Welsh rates of Income Tax

The Wales Act 2017 gives the Welsh Parliament the power to set Welsh Rates of Income Tax (WRIT). This allows the Welsh Government to affect the amount of Income Tax that Welsh taxpayers pay and, as a result, the amount that the Welsh Government can spend in Wales. WRIT is calculated on a tax year basis and was introduced with effect from 6 April 2019.

The Welsh rates up to the 2023 to 2024 tax year were set at 10% for each of the tax bands. This means that a Welsh taxpayer paid the same amount of total Income Tax as someone from England and Northern Ireland earning the same amount of income, but for the Welsh taxpayer 10 percentage points of each tax band was owed to the Welsh Government with the remainder owed to the UK Consolidated Fund.

12.3. Scottish and Welsh rate of Income Tax estimates for 2023 to 2024

The provisional estimate of revenue raised in 2023 to 2024 from Scottish Income Tax is £17.3 billion and from Welsh rates of Income Tax it is £2.9 billion.

These figures have been estimated because actual data is unavailable. For example, minimal disclosure has been made to HMRC in respect of SA revenue for the 2023 to 2024 tax year, since the deadline for submitting SA returns online is not until 31 January 2025, and PAYE revenue is not available for taxpayers whose accounts have not been reconciled at the time the estimate has been produced for the Trust Statement. They also include estimates for the impact of budget measures, Gift Aid and other effects, such as broader demographic changes before the amount is apportioned between Scotland, Wales and the remainder of the UK.

The Scottish and Welsh shares of Income Tax liabilities are estimated using a model based on the HMRC Survey of Personal Incomes which reflects data collected in 2021 to 2022. These are also adjusted to take account of the latest 2022 to 2023 Income Tax for the Scottish and Welsh final outturn data. This latter adjustment involves scaling each of the provisional estimates in 2023 to 2024 by the percentage difference between their 2022 to 2023 final outturn data and the underlying methodology’s estimates of 2022 to 2023 based on the HMRC Survey of Personal Incomes.

The underlying methodology estimated lower Scottish Income Tax receipts in 2022 to 2023 than the final outturn, therefore, the 2023 to 2024 provisional estimate has been scaled up by a proportionate amount. Conversely, the methodology estimated higher Welsh rates of Income Tax receipts for 2022 to 2023 than the final outturn and the 2023 to 2024 provisional estimate has been scaled down by a proportionate amount.

Further information on revenue for the tax year 2023 to 2024 that becomes available during 2024 to 2025 will allow refinement of these calculations. Updated figures will be disclosed in the 2024 to 2025 Trust Statement, allowing a final reconciliation for the 2023 to 2024 tax year.

12.4. Scottish and Welsh rates of Income Tax outturn for 2022 to 2023

Provisional estimates for Scottish Income Tax of £15.0 billion and £2.6 billion for Welsh rates of Income Tax were disclosed in last year’s accounts. Now that HMRC has established over 95% of the tax liabilities for the year, the final outturn figures for 2022 to 2023 have been calculated as £15.2 billion for Scottish Income Tax and £2.6 billion for Welsh rates of Income Tax.

For full details on the 2022 to 2023 outturn please refer to the HMRC publications released on 11 July 2024 Scottish and Welsh Income Tax Outturn Statistics on GOV.UK. The outturn publications are not subject to NAO audit.

HM Treasury is responsible for ensuring that the proceeds are made available to fund expenditure by the Scottish and Welsh Governments; these transfers are not accounted for in the HMRC Trust Statement.

The costs of collecting and administering are charged to the Scottish and Welsh Governments and accounted for in the Resource Accounts, but these are not individually disclosed due to materiality.

13. Events after the reporting period

There are no reportable events after the reporting period. These accounts have been authorised for issue by the Accounting Officer on the same date as the Comptroller and Auditor General’s Audit Certificate.

Accounts direction given by HM Treasury

Accounts direction given by HM Treasury in accordance with Section 2 of The Exchequer and Audit Departments Act 1921

1. This direction applies to those government departments listed in appendix 2.

2. The Department shall prepare a Trust Statement (‘the Statement’) for the financial year ended 31 March 2024 for the revenue and other income, as directed by the Treasury, collected by the department as an agent for others, in compliance with the accounting principles and disclosure requirements of the edition of Government Financial Reporting Manual (FReM) 2023 to 2024.

3. The Statement shall be prepared, as prescribed in appendix 1, so as to give a true and fair view of (a) the state of affairs relating to the collection and allocation of taxes, licence fees, fines and penalties and other income by the Department as agent and of the expenses incurred in the collection of those taxes, licence fees, fines and penalties insofar as they can properly be met from that revenue and other income; (b) the revenue and expenditure; and (c) the cash flows for the year then ended.

4. The Statement shall also be prepared so as to provide disclosure of any material expenditure or income that has not been applied to the purposes intended by Parliament or material transactions that have not conformed to the authorities which govern them.

5. When preparing the Statement, the Department shall comply with the guidance given in the FReM (Chapter 11). The Department shall also agree with HM Treasury the format of the Principal Accounting Officer’s Foreword to the Statement, and the supporting notes, and the accounting policies to be adopted, particularly in relation to revenue recognition. Regard shall also be given to all relevant accounting and disclosure requirements in Managing Public Money and other guidance issued by HM Treasury, and to the principles underlying International Financial Reporting Standards.

6. Compliance with the requirements of the FReM will, in all but exceptional circumstances, be necessary for the accounts to give a true and fair view. If, in these exceptional circumstances, compliance with the requirements of the FReM is inconsistent with the requirement to give a true and fair view, the requirements of the FReM should be departed from only to the extent necessary to give a true and fair view. In such cases, informed and unbiased judgement should be used to devise an appropriate alternative treatment which should be consistent with both the economic characteristics of the circumstances concerned and the spirit of the FReM. Any material departure from the FReM should be discussed in the first instance with HM Treasury.

7. The Statement shall be transmitted to the Comptroller and Auditor General for the purpose of his examination and report by a date agreed with the Comptroller and Auditor General and HM Treasury to enable compliance with the administrative deadline for laying the audited accounts before Parliament.

8. The Statement, together with this direction (but with the exception of the related appendices) and the Report produced by the Comptroller and Auditor General under section 2 of the Exchequer and Audit Departments Act 1921 shall be laid before Parliament at the same time as the Department’s Resource Accounts for the year unless the Treasury have agreed that the Trust Statement may be laid at a later date.

Charlotte Goodrich
Deputy Director, Government Financial Reporting
HM Treasury
14 December 2023

Resource accounts

Consolidated Statement of Comprehensive Net Expenditure for the year ended 31 March 2024

This statement summarises the expenditure incurred and income generated on an accruals basis. Other comprehensive expenditure and income includes changes to the values of non‑current assets that cannot yet be recognised as income or expenditure.

Consolidated Statement of Comprehensive Net Expenditure for the year ended 31 March 2024

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Note	Core department and agency (2023-24) £m	Departmental group (2023-24) £m	Core department and agency (2022-23) £m	Departmental group (2022-23) £m
Cash items:
Child Benefit		12,514.4	12,514.4	11,599.5	11,599.5
Corporation tax reliefs	4.1.4	12,049.1	12,049.1	12,556.4	12,556.4
Personal tax credits	4.1.1	7,305.5	7,305.5	8,835.0	8,835.0
Staff and related costs		3,551.6	3,551.6	3,343.2	3,356.3
Goods and services		1,545.2	1,545.2	1,535.3	1,518.3
Cost of Living Payment		760.0	760.0	717.9	717.9
Tax‑Free Childcare		635.3	635.3	494.4	494.4
Lifetime ISA		499.1	499.1	436.8	436.8
Payments in lieu of tax relief and rates		262.6	262.6	76.1	76.1
Service charges		117.2	117.2	140.7	140.7
Help to Save		51.7	51.7	53.2	53.2
COVID‑19 support schemes		(22.0)	(22.0)	(132.5)	(132.5)
Other cash expenditure		266.6	266.6	345.1	345.9
Non-cash items:
Transfer of personal tax credit receivables to DWP		166.7	166.7	146.8	146.8
Amortisation	6	392.3	392.3	330.1	330.1
Depreciation	5, 7.1	147.4	147.4	151.2	151.2
Personal tax credit provisions	4.1.1, 12	1.7	1.7	-	-
Other provisions	12	(16.0)	(16.0)	21.0	21.0
Other		30.1	30.1	29.8	29.8
Total operating expenditure	2	40,258.5	40,258.5	40,680.0	40,676.9
Total operating income		(365.3)	(365.3)	(276.1)	(273.0)
Net operating expenditure		39,893.2	39,893.2	40,403.9	40,403.9
Net expenditure for the year		39,893.2	39,893.2	40,403.9	40,403.9
Other comprehensive net expenditure
Items that will not be reclassified to net operating expenditure:
Net loss/(gain) on:
– revaluation of property, plant and equipment		(9.9)	(9.9)	(2.7)	(2.7)
– revaluation of intangible assets		(151.1)	(151.1)	(87.6)	(87.6)
– actuarial revaluation of pension scheme		(6.9)	(6.9)	2.1	2.1
Total comprehensive expenditure for the year		39,725.3	39,725.3	40,315.7	40,315.7

The notes to the departmental Resource Accounts form part of these accounts.

Consolidated Statement of Financial Position as at 31 March 2024

This statement presents the financial position of the department. It comprises 3 main components: assets owned or controlled; liabilities owed to other bodies; and equity, the remaining value of the entity.

Consolidated Statement of Financial Position as at 31 March 2024

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Note	Core department and agency (2023-24) £m	Departmental group (2023-24) £m	Core department and agency (2022-23) £m	Departmental group (2022-23) £m
Non-current assets:
Intangible assets	6	2,859.4	2,859.4	2,405.4	2,405.4
Receivables	9	1,112.4	1,112.4	1,250.1	1,250.1
Right‑of‑use assets	7.1	989.4	989.4	1,028.4	1,028.4
Property, plant and equipment	5	717.3	717.3	611.4	611.4
Pension Asset	13	8.5	8.5	1.7	1.7
Total non-current assets		5,687.0	5,687.0	5,297.0	5,297.0
Current assets:
Trade and other receivables	9	1,092.7	1,092.7	1,037.1	1,036.7
Cash and cash equivalents	10	41.0	41.0	77.9	78.6
Inventories		2.9	2.9	2.2	2.2
Total current assets		1,136.6	1,136.6	1,117.2	1,117.5
Total assets		6,823.6	6,823.6	6,414.2	6,414.5
Current liabilities:
Trade and other payables	11	(10,895.7)	(10,895.7)	(10,571.9)	(10,572.2)
Lease liabilities	7.2	(63.1)	(63.1)	(65.5)	(65.5)
Provisions	12	(22.3)	(22.3)	(26.0)	(26.0)
Total current liabilities		(10,981.1)	(10,981.1)	(10,663.4)	(10,663.7)
Total assets less current liabilities		(4,157.5)	(4,157.5)	(4,249.2)	(4,249.2)
Non-current liabilities:
Trade and other payables	11	(1,881.5)	(1,881.5)	(1,845.6)	(1,845.6)
Lease liabilities	7.2	(1,181.5)	(1,181.5)	(1,345.8)	(1,345.8)
Provisions	12	(108.0)	(108.0)	(133.3)	(133.3)
Total non-current liabilities		(3,171.0)	(3,171.0)	(3,324.7)	(3,324.7)
Total assets less total liabilities		(7,328.5)	(7,328.5)	(7,573.9)	(7,573.9)
Taxpayers’ equity and other reserves:
General fund		7,577.0	7,557.0	7,733.2	7,733.2
Revaluation reserve		(248.5)	(248.5)	(159.3)	(159.3)
Total equity		7,328.5	7,328.5	7,573.9	7,573.9

The notes to the departmental Resource Accounts form part of these accounts.

Sir Jim Harra KCB
Accounting Officer
26 July 2024

Consolidated Statement of Cash Flows for the year ended 31 March 2024

This statement shows the changes to the department’s cash and cash equivalents during the reporting period. It shows how the department generates and uses these by classifying cash flows as operating, investing, and financing activities. Cash flows arising from financing activities include Parliamentary Supply.

Consolidated Statement of Cash Flows

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Note	Core department and agency (2023-24) £m	Departmental Group (2023-24) £m	Core department and agency (2022-23) £m	Departmental group (2022-23) £m
Cash flows from operating activities
Net operating expenditure		(39,893.2)	(39,893.2)	(40,403.9)	(40,403.9)
Adjustments for non‑cash transactions (note 1)		19,726.4	19,726.4	21,827.7	21,827.7
(Increase)/decrease in trade and other receivables	9	82.1	81.7	(95.1)	(101.1)
Less: Movements in receivables not passing through the Statement of Comprehensive  Net Expenditure		(113.3)	(113.3)	117.6	117.6
Personal tax credits receivables, adjusted  for impairment, transferred to DWP	4.1.2	(166.7)	(166.7)	(146.8)	(146.8)
(Increase)/decrease in inventories		(0.7)	(0.7)	(0.1)	(0.1)
Increase/(decrease) in trade and other payables	11	359.7	359.4	(4,271.1)	(4,269.6)
Capital element of receipts in respect of sub‑leases		0.1	0.1	5.9	5.9
Less: Movements in payables not passing through the Statement of Comprehensive Net Expenditure		58.2	58.2	4,638.3	4,638.3
Use of provisions	12	(14.7)	(14.7)	(19.6)	(19.6)
Net cash outflow from operating activities		(19,962.1)	(19,962.8)	(18,347.1)	(18,351.6)
Cash flows from investing activities
Additions to property, plant, and equipment	5	(70.2)	(70.2)	(65.0)	(64.9)
Less additions to leased property, plant, and equipment		‑	‑	3.1	3.1
Additions to intangible assets (note 2)	6	(675.7)	(675.7)	(580.0)	(580.0)
Less additions to leased intangible assets		5.9	5.9	‑	‑
Proceeds of disposal of property, plant, and equipment		0.5	0.5	0.2	0.6
Net cash outflow from investing activities		(739.5)	(739.5)	(641.7)	(641.2)
Cash flows from financing activities
From the Consolidated Fund (Supply) – current year		20,591.5	20,591.5	14,194.3	14,194.3
From the National Insurance Fund		272.0	272.0	258.8	258.8
Capital element of payments in respect of leases and on-Statement of Financial Position PFI contracts		(198.0)	(198.0)	(86.2)	(86.2)
Net financing		20,665.5	20,665.5	14,366.9	14,366.9
Net increase/(decrease) in cash and cash equivalents in the period before adjustment for receipts and payments to the Consolidated Fund		(36.1)	(36.8)	(4,621.9)	(4,625.9)
Payments of amounts due to the Consolidated Fund		(0.8)	(0.8)	(1.7)	(1.7)
Net increase/(decrease) in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund		(36.9)	(37.6)	(4,623.6)	(4,627.6)
Cash and cash equivalents at the beginning of the period	10	77.9	78.6	4,701.5	4,706.2
Cash and cash equivalents at the end of the period	10	41.0	41.0	77.9	78.6

Note 1: The comparative value has been revised to demonstrate that expenditure reported in the Resource Accounts but met by the Trust Statement, principally personal tax credits and corporation tax reliefs, is paid to claimants through Trust Statement mechanisms and processes and as such do not represent a Cash Flow to be reported in these Resource Accounts.

Note 2: This value excludes the non‑current asset received from Department of Transport by way of a Capital Grant in Kind. this relates to the provision of a unified shared service across HMRC, Department for Transport and Department for Levelling Up, Housing and Communities.

The notes to the departmental Resource Accounts form part of these accounts.

Consolidated Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2024

This statement shows the movement in the year on the different reserves held by the department, analysed into General Fund and revaluation reserve. The General Fund represents the total assets less liabilities of the department, to the extent that it is not represented by other reserves and financing items. The revaluation reserve reflects the change in asset values that have not been recognised as income or expenditure.

Core department and agency figures are the same as departmental group, therefore core department and agency are not shown.

Consolidated Statement of Changes in Taxpayers’ Equity

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Note	General fund Departmental group (2023-24) £m	Revaluation reserve (note 1) Departmental group (2023-24) £m	Taxpayers’ equity Departmental group (2023-24) £m	General fund Departmental group (2022-23) £m	Revaluation reserve (note 1) Departmental group (2022-23) £m	Taxpayers’ equity Departmental group (2022-23) £m
Opening balance		(7,733.2)	159.3	(7,573.9)	(7,317.2)	118.2	(7,199.0)
IFRS 16 adjustment (note 2 and 3)		5.9	‑	5.9	(290.0)	–	(290.0)
Net Parliamentary funding – drawn down		20,591.5	‑	20,591.5	14,194.3	–	14,194.3
Net Parliamentary funding – deemed (note 4)		72.3	‑	72.3	4,694.5	–	4,694.5
Funding from Trust Statement (note 5)		19,053.5	‑	19,053.5	21,148.8	–	21,148.8
National Insurance Fund		281.4	‑	281.4	263.2	–	263.2
Supply (payable)/receivable adjustment		(35.5)	‑	(35.5)	(72.3)	–	(72.3)
Income payable to the Consolidated Fund		(0.8)	‑	(0.8)	(0.3)	–	(0.3)
Net expenditure for the year		(39,893.2)	‑	(39,893.2)	(40,403.9)	–	(40,403.9)
Other net comprehensive expenditure:
Revaluation of property, plant and equipment		‑	9.9	9.9	–	2.7	2.7
Revaluation of intangible assets		‑	151.1	151.1	–	87.6	87.6
Transfer between reserves		71.8	(71.8)	‑	49.2	(49.2)	–
Pension reserve actuarial (losses)/gains		6.9	‑	6.9	(2.1)	–	(2.1)
Contributions to Local Government Pension Scheme pension fund by DWP		0.3	‑	0.3	0.6	–	0.6
Non‑cash charges – auditor’s remuneration	2	2.1	‑	2.1	2.0	–	2.0
Balance at 31 March		(7,577.0)	248.5	(7,328.5)	(7,733.2)	159.3	(7,573.9)

Note 1: The 31 March 2024 balance comprised £21.9 million in relation to property, plant and equipment assets (31 March 2023 £13.0 million) and £226.6 million in relation to intangible assets (31 March 2023 £146.3 million).

Note 2: 2022 to 2023 value represents developer contribution income received and spent before the adoption of IFRS 16.

Note 3: This adjustment relates to a refinement in the application of HMRC’s IFRS 16 subleasing policy which results in an increase in the number of operating subleases and a corresponding reduction in finance subleases.

Note 4: This is any Supply drawn down in the previous year not spent at year‑end and available to be spent in a subsequent financial year.

Note 5: Personal tax credits and corporation tax reliefs are funded out of tax receipts from the Trust Statement. Please see the Statement of Revenue, Other Income and Expenditure in the Trust Statement.

Notes to the departmental Resource Accounts

Notes to the financial statements provide additional information required by statute and accounting standards to explain a particular feature of the financial statements. The notes which follow will also provide explanations and additional disclosure to assist readers’ understanding and interpretation of the financial statements.

1. Statement of accounting policies

1.1. Basis of accounting

These financial statements have been prepared in accordance with the Government Financial Reporting Manual (FReM) for the financial year 2023 to 2024 issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) as adapted or interpreted for the public sector context. Net liabilities shown on the Statement of Financial Position are expected to be met by future funding from the Trust Statement, in respect of the corporation tax reliefs which are the primary element or voted by Parliament annually through Supply and Appropriation Acts. Given there is no reason to believe the resources required to settle these liabilities will not be forthcoming, the Resource Account has been prepared on a going concern basis.

2023 to 2024 FReM

Where the FReM permits a choice of accounting policy, HM Revenue and Customs has applied the most appropriate to give a true and fair view.

1.2. Accounting convention

These accounts have been prepared on an accruals basis under the historical cost convention modified to account for the revaluation of property, plant and equipment and intangible assets.

1.3. Basis of consolidation

This account consolidates the results of the bodies falling within the departmental boundary as defined by the FReM. For HMRC these are core department and Valuation Office Agency (VOA).

1.4. Cost of Living Payment

HMRC are jointly delivering the Cost of Living Payment with the Department for Work and Pensions (DWP). Payments in respect of Cost of Living Payment are made in accordance with the relevant legislation. Cost of Living payment expenditure is recognised in the financial year when payment due to a customer has been approved by HMRC for payment and an accrual is recognised for payments not made by year end in line with the forecast tax credit award.

1.5. Tax credits

1.5.1. Personal tax credits

Where overpayments of personal tax credits arise, these are not by arrangement and are not credit assessed or loan agreements. Customers are given a certain time to settle the overpayment or enter into an arrangement to pay debt. The debt is considered to be overdue after 30 days. The HMRC business model for managing personal tax credit overpayment debt is to collect the contractual cash flows only, with no intention to sell the debt asset.

Personal tax credit debt is being transferred to DWP as part of the transition to Universal Credit, this is a transfer between government bodies and not a sale of the debt.

As per the FReM, the IFRS 9 simplified approach to impairing assets is used to impair tax credit overpayment debt over the lifetime of the debt. The contractual cash flows are solely repayments of principal debt and therefore the debt is measured at amortised cost.

For personal tax credits receivables, there is not a definition of default due to the nature of the legislation surrounding the recovery of overpayments. Personal tax credits receivables are reported net of losses which are defined and detailed in the Losses statement which is reported in the Parliamentary accountability section.

1.5.2. Corporation tax reliefs

In the absence of a specific applicable accounting standard, management have determined the following accounting policy for recognising and measuring expenditure on corporation tax reliefs in line with the principles of IFRS.

Expenditure is recognised as companies engaged in qualifying activities incur their qualifying expenditure, not when subsequent claims are received. This provides a consistent recognition point for expenditure and income between these accounts and the HMRC Trust Statement, where the related corporation tax income is recognised as the taxable events occur and not when returns are filed.

Expenditure and related accrual profiles are estimated by the department’s statisticians using analysis of historic relief claims and applying forecast growth and uplift assumptions and adjustments made for planned changes in relevant policy and rates. This estimation is required due to the time‑lag between the end of companies’ accounting periods and the submission of their tax returns. The filing requirements are such that these returns are not due until 12 months after their accounting period end. Additionally, amended claims can be received up to 24 months after their accounting period end.

In subsequent accounting periods the department evaluates any new information available and determines whether previous estimates of expenditure need to be adjusted. A final estimate is made 5 years after initial recognition with the resulting amount considered to be a reasonable proxy for final outturn in the absence of readily available actual outturn values.

All reliefs expenditure is funded by the Trust Statement, this funding being recognised in reserves.

1.6. Child Benefit (note 1)

Child Benefit expenditure is recognised in the month payment becomes due.

Child Benefit expenditure includes amounts paid to taxpayers earning greater than £50,000 per annum and recovered via future income tax charges. These income tax charges are accounted for in the Trust Statement.

Where under or overpayments are identified, adjustments are made to expenditure, with receivables and payables recognised appropriately. Overpayments are treated as receivables and the department seeks to recover these from future benefit entitlement or through direct repayment.

[Child Benefit receivables are reported net of losses as detailed in the Losses statement which is reported in the Parliamentary accountability section on page 151.] Losses are made up of remissions and write‑offs.

1.7. Tax-Free Childcare (note 1)

Tax‑Free Childcare expenditure is recognised in the financial year in which the top‑up payments are made and is reported in this Resource Account.

1.8. Lifetime ISA (LISA) (note 1)

LISA expenditure is recognised in HMRC financial statements net of penalties; at the point a claim is paid to the relevant LISA provider.

1.9. Non-current assets

1.9.1. General

Property, furniture, vehicles, IT hardware, software licences and website development costs reported by the core department are capitalised (excluding certain low‑value assets).

The following thresholds apply:

• accommodation refurbishments £150,000 (VOA: £15,000)
• other tangible assets £5,000
• information technology £5,000
• software licences £250,000 (formerly £5,000 ‑ this is a change from 2023 to 2024)

Where a contract contains a lease with a term of more than 12 months (unless the underlying asset is of low value), a right of use asset and a lease liability are recognised, under the lease accounting standard IFRS 16. In accordance with options given within the accounting standard, HMRC has elected not to apply IFRS 16 to leases of intangible assets. These continue to be accounted for under IAS 38.

Non‑property assets with the exception of software, are valued on a depreciated historical cost basis as a proxy for fair value as they are of low‑value with short lives.

Note 1: Payments in respect of Child Benefit, Tax‑Free Childcare, and Lifetime ISA (LISA) are made in accordance with the relevant legislation.

Assets are stated at cost less accumulated depreciation/amortisation and impairment losses. These are depreciated/amortised at rates calculated to write them down to estimated residual values on a straight‑line basis over their useful lives. All intangible assets are assessed to have a finite useful life over which they are amortised. Asset useful lives are normally in the following ranges:

Asset category – property, plant and equipment	Useful economic life
Freehold land	Not depreciated
Leasehold land	Period of the lease
Freehold buildings	50 years
Leased serviced accommodation	Period of the lease
Leased IT assets	Period of the lease
Right‑of‑use assets	Period of the lease
Accommodation refurbishments	Remainder of the lease to which they relate
Office equipment	5 to 20 years
Computer equipment	4 to 7 years
Vehicles	5 to 8 years
Furniture and fittings	10 to 15 years
Scientific aids	3 to 10 years

Asset category – intangible assets	Useful economic life
Developed computer software	10 years unless known to be otherwise
Software licences	Period of the licence
Website development costs	10 years unless known to be otherwise

The useful economic life of all assets is considered on an annual basis and changed if required.

A formal impairment review is undertaken on an annual basis for buildings, accommodation refurbishments, developed computer software assets and intangible assets under construction.

Assets under construction are recorded at cost and are not depreciated or amortised until they are available for use. Once in use they are capitalised, depreciated and subject to impairment reviews in accordance with the policy applicable to the asset class.

1.9.2. Property, plant and equipment

Property

Freehold property is recognised where the contract in substance transfers a freehold interest in the building to HMRC.

Leases

Like other government bodies, HMRC typically lease properties used for administrative purposes for reasons of efficiency and flexibility. The departmental group also benefits from the lease of vehicles. For other types of assets, the departmental group determines whether to lease or purchase based on value for money considerations, such as whether the underlying asset is required for its entire life or for a more limited period.

Scope and exclusions – the departmental group as lessee

In accordance with IFRS 16 Lease accounting, contracts, or parts of contracts, that convey the right to control the use of an asset for a period, in exchange for consideration, are accounted for as leases. Leases relating to low‑value items, where the underlying asset would have a cost of less than £5,000 when new, and those with a term of less than 12 months, are not included.

The lease liability is measured at the present value of the remaining lease payments discounted either by the interest rate implicit in the lease or, where this is not readily determinable, the department’s incremental rate of borrowing. This rate is advised annually by HMT, 3.51% for leases recognised to 31 December 2023, 4.72% for leases recognised from 1 January 2024 (0.95% 2022).

Expenditure charge to the CSoCNE for each financial year includes interest on the lease liability and a straight‑line depreciation charge on the right‑of‑use asset over the life of the lease, together with any impairment of the right‑of‑use asset and any change in variable lease payments that was not included in the measurement of the lease payments during the period in which the triggering event occurred.

Finance and operating leases – the departmental group as lessor

Where the department acts as a lessor or intermediate lessor for an asset it has itself leased, the arrangement will be assessed to determine whether it constitutes a finance lease, this being where the risks and rewards incidental to ownership of a right‑of‑use (RoU) or underlying asset are substantially transferred to the lessee. For these leases the asset is derecognised, and a receivable representing the net interest in the lease is recognised, with accrued interest being treated as income over its life. Where sublease rental income is inclusive of the value of irrecoverable VAT charged on the headlease, the value of the VAT is excluded from the receivable and credited directly to the CSoCNE.

All other leases are treated as operating leases and rental income is recognised in the CSoCNE on a straight‑line basis. In 2023 to 2024 HMRC reassessed its accounting treatment where the department acts as lessor and sublets to another government department under a Memorandum of Terms of Occupation (MoTO). Such agreements are not legally enforceable, and the risks and rewards incidental to ownership of an RoU or underlying asset are not deemed to have transferred from the lessor to lessee. Accordingly, all MoTOs under which the department is lessor are treated as operating leases to reflect the economic and legal substance of the arrangements. An immaterial adjustment to restate RoU assets since transition to IFRS 16 has been included in the current year.

Where a long leasehold for property transfers to HMRC in substance, the contract is not treated as a right‑of‑use asset in accordance with IFRS 16, the asset is instead recognised as freehold property.

For Private Finance Initiative (PFI) transactions where the department has control within a contract and a material residual interest, property is recognised as a non‑current asset and the liability to pay for it is accounted for as a lease. Contractual payments are apportioned between Consolidated Statement of Comprehensive Net Expenditure, financing and service charges and a Consolidated Statement of Financial Position lease liability.

The department has also capitalised other PFI property interests as leases being concession arrangements.

Property assets have been stated at current value in existing use using professional valuation on a rolling 5‑year programme, all assets will be professionally revalued within this time period.

Each year 20% of the estate is physically revalued with the remainder undergoing a desktop revaluation exercise to identify material changes. The basis of the valuation is in accordance with the professional standards of the Royal Institute of Chartered Surveyors: RICS Valuation. Compliance with the RICS professional standards and valuation practice statements gives assurance also of compliance with the International Valuers Standards. For IFRS 16, the cost model is applied as a proxy for fair value as the lease payments are updated to reflect current market pricing.

Information technology

Where applicable, the IT non‑current assets recognised by our IT partners and used in providing the IT service to the department have been capitalised as leases and are disclosed at the lower of fair value and the present value of the minimum lease payments, at the inception of the contract.

Assets under construction

Assets under construction are separately reported in note 6. In respect of the HMRC Locations Programme, this includes accommodation refurbishment and furniture assets. Costs are accumulated until the asset is available for use whereupon it is transferred to the relevant asset class and depreciation commences.

1.9.3. Intangibles

Developed computer software

Computer software that has been developed by the department and its IT service partners, and for which the department has ownership rights, has been capitalised. This capitalisation includes the staff costs for developing, integrating and testing IT software.

Excluding additions in the financial year, and any software formally valued during the year, software assets are revalued annually by applying an index. As the major cost of developing computer software is IT labour costs, the index used is Office of National Statistics – ‘AWE: Information & Communication Index: Non‑Seasonally Adjusted Total Pay Including Arrears’. This index focuses on tracking changes in pay within the Information and Communications Industries.

Software licenses

For a software licence to be identified as a capital asset, it needs to adhere to IAS 38 and HMRC policy. From 1 April 2024 the threshold for the capitalisation of software licences is £250,000. Software licences must also have a life over 12 months, be separately identifiable, (arising from legal rights), under HMRC control and will generate a future economic benefit for HMRC.

Assets under construction

Intangible assets under construction relate to software development by the department and our commercial IT partners. Intangible assets under construction are separately reported in note 7. Costs are accumulated until the asset is available for use whereupon it is transferred to the relevant asset class and amortisation commences.

1.10. Pensions

1.10.1. Civil Service Pension Schemes

The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servants and Others Pension Scheme (CSOPS) known as Alpha, are unfunded and contributory defined benefit schemes. The departmental group recognises the expected cost of these elements. This is determined systematically and rationally over the period during which we benefit from employees’ services by payment to the PCSPS and CSOPS of amounts calculated on an accruing basis. Liability for payment of future benefits is a charge on the PCSPS and CSOPS. Further information can be found within the accounts of Civil Service Pensions.

Civil Service Pensions

1.10.2. Local Government Pension Scheme

A number of the Valuation Office Agency employees are members of the Local Government Pension Scheme (LGPS). The LGPS is one of the largest public sector pension schemes in the UK. It is a nationwide defined benefit pension scheme designed for people working in local government or for individuals employed by other organisations who have chosen to participate in it.

Further information can be found within the Valuation Office Agency accounts.

1.10.3. Partnership pensions

The partnership pension account is a stakeholder pension arrangement with employees able to choose a stakeholder pension product from a panel of providers. The partnership pension account is a defined contribution scheme, provided as an alternative option for members who do not wish to join one of our defined benefit arrangements (classic, classic plus, premium, nuvos and alpha).

1.11. Provisions and Contingent liabilities

The department discloses provisions and contingent liabilities in excess of the de minimis limit for reporting of £0.1 million.

We recognise provisions in accordance with IAS 37: Provisions, Contingent Liabilities and Contingent Assets. The expenditure required to settle the obligation is calculated based on the best available information.

Where the time value of money is significant, provisions and contingent liabilities are stated at discounted amounts, as directed by revised Public Expenditure System (PES) (2023) 10.

1.11.1. Early departure costs

The department is required to meet the additional cost of benefits beyond the normal PCSPS benefits in respect of employees who have taken early departure or retirement under the Civil Service Compensation Scheme. The department has made provision in full for early retirement costs. The estimated risk‑adjusted cash flows are discounted at 2.45% as set by HM Treasury (2022 to 2023: 1.70%).

1.12. Value Added Tax (VAT)

Most of the activities of the department are outside the scope of VAT. A proportion of the activities of the department will attract VAT, and output VAT will apply in these circumstances. The department also has recoverable and non‑recoverable elements for input VAT on purchases. Some purchase VAT on a restricted number of services is recovered under Section 41 of the VAT Act 1994 and in accordance with the HM Treasury ‘Contracting‑out Direction’.

Section 41 is intended to remove any disincentive to government departments of contracting‑out activities performed ‘in‑house’ where there is a sound basis for doing so. Non‑recoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of non‑current assets. Income and expenditure is otherwise shown net of VAT.

1.13. Critical accounting judgements and key sources of estimation

The preparation of financial statements in accordance with IFRS requires the use of certain accounting estimates. It also requires management to exercise judgement in the process of applying the department’s accounting policies.

The areas that involve a higher degree of judgement or complexity, or where the assumptions and estimates are significant to the Resource Accounts, are as follows:

Personal tax credits expenditure

Personal tax credits, reported at note 4.1.1, consist of Child Tax Credit and Working Tax Credit. Receivable and payable balances are based on data from tax credits systems and are used to inform the appropriation of revenue from the Trust Statement, where a cash‑based disbursements figure is recorded to these accounts on an accruals accounting basis.

Finalisation is the process, occurring after the financial year end, by which claimants confirm their actual income and other circumstances for the previous award year. These accounts include an estimate of the finalisation exercise relating to 2023 to 2024. The estimate produced for financial year 2023 to 2024 considers the impact of claimants migrating to DWP under Universal Credit throughout 2024 to 2025 using the best available information, the extent to which policies impact on the estimate and utilises the latest compliance information. It is therefore subject to uncertainty.

The accrual for personal tax credits is calculated using the actual split of Working Tax Credit and Child Tax Credit payments made in the current year.

Corporation tax reliefs expenditure

The accounting policy for corporation tax reliefs is a judgement in the context of these accounts because management has determined an appropriate policy for recognition and measurement in the absence of a specific accounting standard. In adopting the current policy, we have selected a recognition point that maintains consistency between relief expenditure recognised in these accounts and the related corporation tax income recognised in the Trust Statement.

Expenditure is recognised for corporation tax reliefs in advance of claims being received because of the timing difference between when qualifying expenditure is incurred by companies and when they make claims. Estimation uncertainty results from this timing difference because assumptions about qualifying expenditure need to be made based on historic experience, forecast growth rates, and planned changes in relevant tax policy and rates.

The key assumptions in the estimates for corporation tax reliefs are:

• the proportion of company tax returns for the latest year’s outturn data used in the estimate that have not been received or processed at the time the data extract is taken for the estimate (referred to as the ‘uplift factor’)
• the forecast growth rate

Note 4.1.4 provides further detail on the estimation uncertainty relating to corporation tax reliefs.

Impairment of receivables

Receivables in the Statement of Financial Position are reported after impairment, which is estimated based on our analysis of existing receivables and historical trends in debt recovery, losses, discharges, amendments, and cancellations. The FReM does not require HMRC to determine impairments in accordance with IFRS 9 for tax credits and benefits, as the standard relates to financial instruments, and credits and benefits arise from statute and not a contract. However, to the extent applicable and feasible, impairment of receivables has been calculated in accordance with this standard.

The following receivables balances have been impaired: personal tax credits, Child Benefit, law costs, and other receivables.

To calculate the impairment for personal tax credits receivables we use an expected credit losses (ECL) model that estimates future debt recoverability of personal tax credits debt based on historic debt recovery rates.

The main judgements that we have made when producing the ECL model are:

• a value for new debts is given by the yearly evolution of the debt stock less remissions, transfers, and recoveries
• recent debt recovery experience is a reasonable proxy for recovery rates that inform our scenario analysis
• the migration of claimants to Universal Credit affects debt movements and it is therefore necessary to assess the effect of HMRC debt recovery efficiency in isolation from the effect of the rate of transition to Universal Credit
• external future economic developments will not significantly affect recovery rates
• the discount rate applied to future recoveries is 2.05%, in accordance with Public Expenditure System papers published for government by HM Treasury
• the consideration of the following 3 debt scenarios:
  • the upper scenario considers the past 3 years debt recovery rates, takes the highest recovery rate, and applies that rate to future recoveries
  • the middle (base) scenario takes the last complete year’s debt recovery rate and applies that to future recoveries
  • the lower scenario considers the past 3 years debt recovery rates, takes the lowest recovery rate, and applies that rate to future recoveries

The model assumes the upper and lower recovery scenarios will occur with a 15% likelihood and the base scenario with a 70% likelihood.

Provisions and contingent liabilities

The department undertakes a quarterly review of provisions and contingent liabilities. These are estimated by appropriate business areas based on the likelihood of a liability materialising.

1.14. Impending application of newly issued accounting standards not yet effective

New and revised standards and interpretations have been issued but are not yet effective and have not therefore been adopted in this account.

IFRS 17 – Insurance Contracts

IFRS 17 is the new accounting standard for Insurance Contracts and aims to make risk transfer contracts more comparable between entities. Whilst the standard, which will replace IFRS 4: Insurance Contracts, will be effective for annual reporting periods beginning on or after 1 January 2023, an implementation date for government has been confirmed as 1 April 2025.

HMRC are assessing the impact of the adoption of this standard with key business areas.

IFRS 18 – Presentation and Disclosure of Financial Statements

The objective of IFRS 18 is to set out requirements for the presentation and disclosure of information in general purpose financial statements to help ensure they provide relevant information that faithfully represents an entity’s assets, liabilities, equity, income and expenses.

IFRS 19 – Subsidiary without Public Accountability

The objective of IFRS 19 is to specify the disclosure requirements an entity is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards.

IFRS 18 and IFRS 19 become effective from 1 January 2027, however have not yet been endorsed by the UK Endorsement Board (UKEB) and have not yet been considered by the Financial Reporting Board (FRAB). HMRC will consider impacts of implementing these standards once endorsed by UKEB and FRAB.

2. Expenditure

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Note	Core department and agency (2023-24) £m	Departmental group (2023-24) £m	Core department and agency (2022-23) £m	Departmental group (2022-23) £m
Personal tax credits (note 1)	4.1.1	7,305.5	7,305.5	8,835.0	8,835.0
Corporation tax reliefs	4.1.4	12,049.1	12,049.1	12,556.4	12,556.4
Child Benefit
Child Benefit (note 2)		12,510.2	12,510.2	11,595.6	11,595.6
Guardian’s Allowance (funded from National Insurance Fund)		4.2	4.2	3.9	3.9
		12,514.4	12,514.4	11,599.5	11,599.5
Cost of Living Payment		760.0	760.0	717.9	717.9
Tax-Free Childcare		635.3	635.3	494.4	494.4
Lifetime ISA		499.1	499.1	436.8	436.8
Help to Save		51.7	51.7	53.2	53.2
COVID-19 support schemes (note 3)
Coronavirus Job Retention Scheme		(19.0)	(19.0)	(130.9)	(130.9)
Self‑Employment Income Support Scheme		(0.6)	(0.6)	(1.5)	(1.5)
Eat Out to Help Out		(2.4)	(2.4)	–	–
Working Households Receiving Tax Credits		-	-	(0.1)	(0.1)
		(22.0)	(22.0)	(132.5)	(132.5)
National Insurance Fund top-up
Staff and related costs
Wages and salaries		2,611.2	2,611.2	2,438.8	2,449.4
Other pension costs		654.6	654.6	630.3	631.2
Less capitalised costs		(69.5)	(69.5)	(62.2)	(62.2)
Social security costs		282.4	282.4	266.6	267.9
Travel, subsistence and hospitality		40.4	40.4	41.7	42.0
Recruitment and training		28.7	28.7	31.4	31.4
Early severance schemes (note 4)		3.8	3.8	(3.4)	(3.4)
		3,551.6	3,551.6	3,343.2	3,356.3
Service charges
Contract payments		100.0	100.0	122.2	122.2
Interest charges		17.2	17.2	18.5	18.5
		117.2	117.2	140.7	140.7
Goods and services
IT services and consumables		1,011.7	1,011.7	1,024.2	1,006.8
Contracted out services		322.7	322.7	305.2	305.2
Printing, postage, stationery and office supplies		63.9	63.9	58.6	58.6
Legal and investigation		46.2	46.2	52.7	52.7
Enforcement costs		37.8	37.8	41.1	41.1
Telephone expenses		26.9	26.9	29.6	30.0
Other goods and services		22.0	22.0	18.9	18.9
Consultancy		14.0	14.0	5.0	5.0
		1,545.2	1,545.2	1,535.3	1,518.3
Payments in lieu of tax relief and rates		262.6	262.6	76.1	76.1
Other cash expenditure
Accommodation expenses		176.4	176.4	211.4	211.4
Operating leases		19.8	19.8	38.2	38.2
Payments to add capacity		0.1	0.1	‑	‑
National Insurance Fund collection service on behalf of other government departments		51.1	51.1	51.3	51.3
Losses and special payments (excluding Child Benefit, tax credits and COVID‑19 support schemes)		3.2	3.2	3.6	3.6
Auditors remuneration and expenses( note 5)		-	-	–	0.1
Other		16.0	16.0	40.6	41.3
		266.6	266.6	345.1	345.9
Non-cash items:
Amortisation, depreciation and impairments
Amortisation	6	392.3	392.3	330.1	330.1
Depreciation	5	147.4	147.4	151.2	151.2
Loss on impairment of non-current assets		14.5	14.5	10.7	10.7
		554.2	554.2	492.0	492.0
Provisions for liabilities and charges	12	(14.3)	(14.3)	21.0	21.0
Other non-cash
Transfer of personal tax credits receivables to DWP		166.7	166.7	146.8	146.8
Auditors remuneration and expenses (note 4)		2.1	2.1	2.0	2.0
Other		13.5	13.5	17.1	17.1
		182.3	182.3	165.9	165.9
Total non-cash items		722.2	722.2	678.9	678.9
Total operating expenditure		40,258.5	40,258.5	40,680.0	40,676.9

Notes:

1. Personal tax credits expenditure reported in note 4.1.1 includes £1.7 million (2022 to 2023: nil) of provision created in 2023 to 2024.
2. Child Benefit expenditure includes amounts paid to higher rate taxpayers earning greater than £50,000 per annum in the 2023 to 2024 financial year. It is estimated that £560 million (2022 to 2023: £494 million) will be recovered via future income tax charges arising from payments of Child Benefit to those earning over £50,000 in 2023 to 2024. These income tax charges are accounted for in the Trust Statement. The prior year comparative has been revised.
3. Negative values represent return of COVID‑19 payments.
4. Early severance schemes include an adjustment of £4.5 million in 2022 to 2023 relating to 2019 to 2020 exit scheme cases where no further payments are required.
5. The NAO did not undertake any work of a non‑audit nature during the period.

3. Statement of operating expenditure by operating segment

This note shows how resource expenditure is apportioned against the main areas of core business activity.

Each segment relates to a core business activity reported to the Chief Executive and the Board. This management information covers expenditure and income and is used by the Board to inform decisions.

3.1. Expenditure and income by reportable segment

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Gross expenditure (2023-24) £m	Income (2023-24) £m	Net expenditure (2023-24) £m	Gross expenditure (2022-23) £m	Income (2022-23) £m	Net expenditure (2022-23) £m
Reportable segment
Customer Services	1,021.7	58.9	962.8	927.6	46.4	881.2
Customer Strategy and Tax Design	261.3	7.9	253.4	233.7	7.1	226.6
Customer Compliance	1,669.4	74.1	1,595.3	1,602.5	72.5	1,530.0
Solicitors Office and Legal Services	102.5	8.5	94.0	130.0	7.0	123.0
Borders and Trade	336.9	14.0	322.9	375.0	11.9	363.1
Chief Digital and Information Officer Group	1,096.9	71.1	1,025.8	1,118.6	53.4	1,065.2
Chief Finance Officer Group (note 1)	424.1	119.5	304.6	427.0	68.8	358.2
Corporately Managed (note 1)	47.1	1.7	45.4	63.2	1.3	61.9
Chief People Officer Group	110.2	7.2	103.0	113.0	6.8	106.2
Chief Executive Office	2.5	‑	2.5	2.2	–	2.2
Transformation Group	212.4	0.9	211.5	225.9	0.9	225.0
Communications	22.7	0.1	22.6	22.6	0.6	22.0
Valuation Office Agency	242.7	58.4	184.3	218.2	47.1	171.1
Total	5,550.4	422.3	5,128.1	5,459.5	323.8	5,135.7

Note 1:  2022 to 2023 restated to separately identify the Corporately Managed reportable segment from the Chief Finance Officer Group segment.

3.2. Reconciliation between operating segments and Consolidated Statement of Comprehensive Net Expenditure

Information on all other net expenditure is included in the table below. This information is reported to the Board, however as it is centrally managed it is reported in a different format than the reportable segments in the management accounts which compares budgeted spend to full year forecast spend at the segment level.

Reconciliation between operating segments and Consolidated Statement of Comprehensive Net Expenditure

	2023-24 £m	2022-23 £m
Total net expenditure reported for operating segments	5,128.1	5,135.7
COVID‑19 support schemes	(22.0)	(132.5)
Cost of Living payment	760.0	717.9
Personal tax credits	7,307.2	8,835.0
Child Benefit and Child Trust Fund	12,514.4	11,599.5
Corporation tax reliefs	12,049.1	12,556.4
Lifetime ISA	499.1	436.8
Depreciation/Amortisation/Impairment	546.3	488.6
Transfer of personal tax credits receivables to DWP	166.7	146.8
Tax‑Free Childcare	635.3	494.5
Help to Save	51.7	53.1
Payments in lieu of tax relief	173.6	7.9
Payments of Local Authority Rates	83.7	64.2
Net Operating Expenditure in Statement of Comprehensive Net Expenditure	39,893.2	40,403.9

4. Tax credits, Child Benefit and Tax‑Free Childcare

4.1. Tax credits

Since the 2011 to 2012 financial year, personal tax credits expenditure and certain corporation tax reliefs have been reported in these Accounts. Tax credits can comprise of both an element that is treated as negative taxation, being the extent to which the relief is less than or equal to the recipient’s tax liability, and an element that is in excess of the tax liability, being a payment of entitlement. Only those credits whose design allows the inclusion of a payment of entitlement are reported in these accounts.

4.1.1. Analysis of personal tax credits expenditure

Personal tax credits consist of Child Tax Credit and Working Tax Credit. The apportionment of expenditure between Child Tax Credit and Working Tax Credit shown in the table below is estimated.

Awards are assessed and paid throughout the financial year on a provisional basis, based on claimants’ assessments of their personal circumstances.

Claims are adjusted after the end of each award year, once claimants’ actual circumstances are known, this is called Finalisation. Finalisation may give rise to under or overpayments which are accounted for as soon as identified. Finalisation is not complete until after the Resource Account has been published, consequently there is uncertainty around the level of adjustments likely to arise.

Analysis of personal tax credits expenditure

	2023-24 £m Child Tax Credit	2023-24 £m Working Tax Credit	2023-24 £m Total tax credits	2022-23 £m Child Tax Credit	2023-23 £m Working Tax Credit	2022-23 £m Total tax credits
Tax credits	5,894.8	1,543.3	7,438.1	7,209.4	1,577.3	8,786.7
Movement in impairment of receivables	(383.2)	(100.3)	(483.5)	(107.9)	(25.1)	(133.0)
Remissions/write‑offs	225.7	126.9	352.6	106.0	75.3	181.3
Total personal tax credits	5,737.3	1,569.9	7,307.2	7,207.5	1,627.5	8,835.0

Further information on the operation of personal tax credits can be found on GOV.UK

4.1.2. Personal tax credits receivables

Where under or overpayments are identified, either during the award year or subsequently, adjustments are made to expenditure. Overpayments are treated as receivables and the department seeks to recover these from future personal tax credits awards or through direct repayment.

The Department for Work and Pensions (DWP) has responsibility for recovering personal tax credits debt for customers who have made a claim to Universal Credit (UC). In line with the Financial Reporting Manual (FReM), debt transfers are treated as capital grants in kind in the Financial Statements. The debt stock is impaired consistently with IFRS 9 (Financial Instruments) and in line with HMRC policy.

Personal tax credits receivables

	Note	2023-24 £m	2022-23 £m
Receivables as at 1 April		2,963.2	3,326.8
Adjustment to prior year finalisation estimate		98.6	152.8
Estimated overpayment of awards prior to finalisation (note 1)		86.0	235.0
Overpayments identified from change of circumstances in year		304.2	265.4
Transferred to DWP (note 2)		(309.9)	(290.7)
Recoveries made		(499.5)	(544.7)
Remissions/write‑offs		(352.6)	(181.3)
Receivables as at 31 March		2,290.0	2,963.3
Impairment as at 1 April		1,369.5	1,646.4
Transferred to DWP (note 3)		(143.2)	(143.9)
Movement in impairment		(483.6)	(133.0)
Impairment at 31 March		742.7	1,369.5
Net receivables at 31 March		1,547.3	1,593.8
Of which:
Amounts expected to be recovered within one year	9	434.9	464.8
Amounts expected to be recovered in more than one year	9	1,112.4	1,129.0
Total		1,547.3	1,593.8

Notes:

1. The range of the estimate is £65 million to £190 million (2022 to 2023: £100 million to £345 million).

Notes 2 and 3: Summary of receivables transferred to DWP

	Note	2023-24 £m	2022-23 £m
Gross receivables		309.9	290.7
Impairments		(143.2)	(143.9)
Net receivables transferred to DWP		166.7	146.8

Personal tax credits expected credit loss (ECL)

HMRC routinely assess likely recovery of debts, accepting that the individual credit risk associated with these debts increases as they age. However, the credit risk itself is not routinely assessed because the debts relate to overpayments made to benefit claimants, and not to lending through formal arrangements.

As simple financial instruments, under IFRS 9 the debts are impaired over their lifetime as required under the FReM (chapter 8.2, table 2, interpretation 6).

The credit loss we recognise is the difference between the cash flows that are due to HMRC, in accordance with our contractual relationship with our customers, and the cash flows that we expect to receive.

The main data inputs to the model are historic monthly stocks and flows of debt (including recoveries, remissions, and transfers to DWP), tax credit expenditure forecasts, the finalisation estimate, and the claimant migration profile to Universal Credit.

The key assumptions/judgements included in the ECL model are included in note 1.13.

HMRC have explored possible correlations between the unemployment rate and live recovery of personal tax credits debt, and between the Average Earnings Index and Consumer Price Index and direct recovery of personal tax credits debt. After testing, no robust relationships were found between these economic determinants and debt recovery, therefore forecasts of future economic conditions are not included in our ECL model. We therefore consider historic recovery experience to be a suitable proxy for future debt recovery.

The impairment is calculated in yearly bandings with historic recovery rates for each year being applied to cover the entire aged debt balance. The table below provides a summary of the impairment information:

	Gross receivable £m	Impairment £m	Net receivable £m
Total HMRC debt	2,290.0	742.5	1,547.5
of which debt less than one year old	271.6	17.0	254.6
of which debt more than one but less than 5 years old	738.6	71.1	667.5
of which debt more than 5 but less than 10 years old	604.3	144.3	460.0
of which debt more than 10 years old	675.5	510.1	165.4

Sensitivity analysis

There is a significant degree of uncertainty around the assumptions that underpin the ECL model. The sensitivity analysis below provides an indication of the impact on the estimate if key assumptions were to change.

Scenario	Change to impairment as a percentage of gross receivables	Change to impairment £m
The upper recovery scenario was applied to 100% of the debt stock (as opposed to 10%)	-2%	(55.0)
The lower recovery scenario was applied to 100% of the debt stock (as opposed to 10%)	14%	315.0

Personal tax credits finalisation

HMRC analysts provide an estimated range for the results of the current year finalisation exercise and the estimate disclosed represents the most likely point within the range. The range is obtained by assessing the level of overpayment created in current and previous years and then considering the impact of other factors. The lower end of the range is £65 million, and the upper end is £190 million.

The estimate produced for 2023 to 2024 considers the impact of claimants migrating to Universal Credit in the next financial year using the best available information. The impacts of COVID‑19 are not considered to be material to these calculations.

4.1.3. Personal tax credits error and fraud

Error and fraud in personal tax credits (PTC E&F) was previously estimated by the tax credits Error and Fraud Analytical Programme (EFAP); a stratified random sample of tax credits awards was investigated by HMRC compliance officers to identify error and fraud in favour of the claimant or HMRC. From tax year 2022 to 2023, HMRC has ceased the tax credits EFAP random enquiry as PTC is planned to close in tax year 2024 to 2025, and remaining customers will move to Universal Credit, administered by the Department for Work and Pensions (DWP).

HMRC has developed a new projection methodology based on 5 previous years of data from EFAP to produce PTC E&F estimates for the remaining duration of PTC. The data over the course of EFAP has shown that the overall E&F rate has remained stable, with a central estimate between 4.4% and 5.5% since tax year 2012 to 2013. This stability is expected to continue, with the main impact on error and fraud expected to be changes to the composition of the PTC population rather than changes in individuals’ propensity for error and fraud. In particular, managed migration to Universal Credit could mean that customer groups with different levels of E&F risk move at different rates, meaning those remaining in PTC represent a smaller or larger proportion of the overall population that are in E&F.

To estimate E&F from tax year 2022 to 2023 onwards, the methodology breaks down the PTC population into 10 distinct groups and calculates the average E&F rate for each group from historic E&F data from EFAP. The categories used to create the 10 groups are listed below:

Type of PTC received:

• Child Tax Credits, no Working Tax Credits
• Both Working and Child Tax Credits
• Working Tax Credits, no Child Tax Credits

Employment status:

• Self‑employed
• Not self‑employed

Number of adults on the claim:

• Single claim
• Joint claim

Calculated E&F rates for each of these groups are applied to the relevant entitlement forecast for the group and then summed to give the central estimate of the total value of E&F. This value can then be expressed as a percentage of total forecast entitlement for the tax year to give the central E&F rate. As the historical E&F rates for each group are based on a random sample, there is uncertainty associated with the estimate. A 95% confidence interval has been calculated using the standard error for the historic E&F data for each group.

We no longer need to wait for awards to be finalised and compliance investigations to be completed to produce an estimate, therefore we are now able to produce estimates for the current reporting year. This means we have produced estimates for tax year 2022 to 2023 and 2023 to 2024, as the latest published statistics from EFAP relate to tax year 2021 to 2022.

The central claimant favour E&F rate for both tax year 2022 to 2023 and 2023 to 2024 is 4.7% of total PTC entitlement, with a 95% confidence interval of 4.4% to 5%. This equates to £415 million in tax year 2022 to 2023 and £365 million in tax year 2023 to 2024. The HMRC favour error rate for both years is 0.8% (0.7% to 0.9%), or £70 million in tax year 2022 to 2023 and £60 million in tax year 2023 to 2024.

Estimates are not directly comparable to previous years due to the change in estimation methodology, however these estimates are broadly in line with the established trend observed in PTC E&F since tax year 2012 to 2013.

Estimated value of personal tax credits error and fraud and as a percentage of final award value

	2023-24 awards £m Lower bound	2023-24 awards £m Central estimate	2023-24 awards £m Upper bound	2022-23 awards £m Lower bound	2022-23 awards £m Central estimate	2022-23 awards £m Upper bound
Overpayments to claimants	335 (4.4%)	365 (4.7%)	385 (5.0%)	385 (4.4%)	415 (4.7%)	580 (5.25%)
Underpayments to claimants	50 (0.7%)	60 (0.8%)	70 (0.9%)	60 (0.7%)	70 (0.8%)	80 (0.9%)

4.1.4. Corporation tax reliefs

In certain circumstances, companies are permitted to reduce their tax liability by making a claim for corporation tax reliefs. To be entitled to these reliefs, a company must be undertaking specific activities and meet the criteria set out for that relief. The corporation tax reliefs reported in these Resource Accounts are reliefs where there is or could be, by their design, a payable element that is in excess of any negative taxation. Other corporation tax reliefs are included in the Trust Statement.

Corporation tax reliefs £m
	2023-24	2022-23
Research and development
Research and development expenditure credits (RDEC)	4,893.3	3,701.0
Small and Medium‑sized Enterprises (SME) scheme	4,547.6	6,492.5
Creative industries:
High‑end Television Tax Relief	1,212.4	952.5
Film Tax Relief	580.9	824.7
Video Games Tax Relief	307.4	208.8
Theatre Tax Relief	206.3	224.6
Audio‑Visual and Video Games Expenditure Credits (note 1)	119.5	‑
Orchestra Tax Relief	47.4	42.5
Children’s Television Tax Relief	40.6	29.6
Animation Tax Relief	22.3	26.2
Museums and Galleries Exhibition Tax Relief	14.6	8.3
Land Remediation Relief	56.1	45.3
Enhanced Capital Allowance	0.7	0.4
Total	12,049.1	12,556.4

Note 1: Reliefs introduced in 2023 to 2024.

In accordance with our accounting policy set out in note 1.5.2, of the expenditure reported in 2023 to 2024 above, £1,912.7 million relates to our final estimate for 2018 to 2019:

Expenditure relating to 2018 to 2019:

	Estimate reported in historic Resource Accounts (£m)	Final estimate (£m)	Included in value reported in these accounts (£m)
Research and development SME	2,219.0	3,509.7	1,290.7
Research and development RDEC	2,354.2	2,800.3	446.1
Creative industries	1,004.9	1,174.3	169.4
Land remediation	30.0	36.5	6.5
Total	5,608.1	7,520.8	1,912.7

Corporation tax reliefs expenditure and related accruals are estimated using analysis of historic relief claims and applying forecast growth and uplift assumptions, and adjustments made for planned changes in relevant policy and rates, by the department’s statisticians. An estimate is required due to the time‑lag between the end of companies’ accounting periods and the submission of their company tax returns (as explained in note 1.5.2). The settled values for 2018 to 2019 are reported in 2023 to 2024.

Research and development tax relief

The cut‑off date for data used in the research and development tax relief estimate for the financial year 2023 to 2024 were claims for the 2022 to 2023 financial year processed by 31 January 2024. The percentage uplift factor applied for claims not received at the cut‑off date is:

• R&D SME claims: for negative taxation element 52.0%; for payment element 20.0%
• R&D Expenditure Credit (RDEC) claims: 49.8%

The forecast growth assumption used for the 2023 to 2024 R&D reliefs estimates are:

• R&D expenditure on which RDEC is claimed, will grow by 3.1% in 2023 to 2024. This is calculated as the OBR ICC determinant.
• R&D expenditure on which R&D SME relief is claimed will fall by 3% in 2023 to 2024. This is calculated by growing expenditure in line with the OBR ICC investment determinant of 3.1% and applying a downward adjustment to account for the reduction in claims relating to 2023 to 24 since the implementation of the R&D Additional Information Form (AIF). The adjustment is calculated by producing a counterfactual estimate of R&D expenditure that excludes the impact of the AIF from outturn data, and applying an 18% reduction.

While the overall estimated cost of CT reliefs remains similar to figures reported in 2022 to 2023, there has been a substantial increase in the cost of the RDEC scheme and a simultaneous decrease in the cost of the SME scheme. There are two key reasons for this:

• R&D claims relating to the 2023 to 2024 year are affected by recent changes to the rates of relief available for R&D claims, which were announced at the 2023 Autumn Statement. The RDEC rate was increased from 13% to 20%, while the SME additional deduction rate was reduced from 130% to 86% and the SME credit rate fell from 14.5% to 10%. This results in an increase in the cost of RDEC claims and a decrease in the cost of SME claims relating to the 2023 to 2024 financial year

• the recent introduction of the mandatory AIF for R&D claims has resulted in a fall in the number and value of claims received for the SME scheme in both 2022 to 2023 and 2023 to 2024

Sensitivity analysis has been applied to understand the degree of uncertainty in the estimates if the key assumptions were to change. The range estimates set out in the table below are based on judgments of the levels of uncertainty, and it is possible actual values may exceed them.

	Change to key assumption:	Change in assumption	Variation £m	Change in assumption	Variation £m
	R&D SME uplift for 2022 to 2023 vary by up to 11.0% (note 1)	Increase by 11%	385	Decrease by 11%	(385)
	RDEC uplift for 2022 to 2023 varies by up to 15% (note 2)	Increase by 15%	307	Decrease by 15%	(307)
	R&D SME expenditure growth in 2023 to 2024 varies by up to +5.0%/‑5.0% (note 3)	Increase by 5%	167	Decrease by 5%	(158)
	RDEC expenditure growth in 2023 to 2024 varies by up to +5.0%/‑5.0% (note 3)	Increase by 5%	228	Decrease by 5%	(216)
	R&D SME additional information form impact varies by up to 5.0%/-5% (note 4)	Increase by 5%	266	Decrease by 5%	(266)

Notes:

1. For the R&D SME uplift factors, the change to the key assumption is based on maximum variations seen in recent years, based on a 31 January cut‑off date for data.

2. For the R&D RDEC uplift factor, the change to the key assumption is based on maximum variations seen in recent years between the actual increase and the uplift assumption.

3. For the R&D SME/RDEC expenditure growth, the increase and decrease use a flat rate of + 5.0%/‑5.0%. Previously, these levels were based on the highest and lowest growth levels observed in the previous 3 years. However, due to the large increases and decreases seen over the COVID period, these produced extreme scenarios.

4. For the SME additional information form impact, the increase and decrease use a flat rate of +5.0%/‑5.0%.

Creative industries reliefs

The key assumptions underpinning the creative industries reliefs are similar to those used for R&D relief. For High‑end Television Tax Relief, Film Tax Relief and Video Games Tax Relief, the 3 largest creative industries reliefs, the cut‑off date used for data was returns received by 12 March 2024. For the other creative industries tax reliefs, we have used outturn data extracted by 31 May 2023.

The forecast growth rate assumptions used for the financial year 2023 to 2024 are:

• Film Tax Relief, High‑end Television Tax Relief, Video Games Tax Relief, Animation Tax Relief and Children’s TV Tax Relief will grow in line with the OBR nominal GDP determinant
• Theatre Tax Relief, Orchestra Tax Relief and Museum and Galleries Exhibition Tax Relief expenditure is forecast to be the estimated expenditure for the financial year 2019 to 2020 (pre‑Covid) increased annually by the OBR nominal GDP determinant per year, before making an adjustment for the estimated impact of the increase in the rate of these reliefs which commenced on 27 October 2021

For High‑end Television Tax Relief and Film Tax Relief, the 2 largest creative industries reliefs, sensitivity analysis has been applied to understand the degree of uncertainty in the estimates if the key assumptions underpinning them were to change. The range estimates set out in the table below are based on judgments of the levels of uncertainty, and it is possible that actual values may exceed them. Sensitivity analysis is not included for other creative industries reliefs – these have a smaller estimate, and their range is expected to be immaterial.

Change to key assumption:	Change in assumption	Variation £m	Change in assumption	Variation £m
High‑end Television Tax Relief expenditure growth in 2023 to 2024 varies by up to +6.3%/‑2.2% (note 1)	Increase by 6.3%	68	Decrease by 2.2%	(25)
Film Tax Relief expenditure growth in 2023 to 2024 varies by up to +6.3%/‑2.2% (note 1)	Increase by 6.3%	36	Decrease by 2.2%	(13)

Note 1: For Film and High‑end Television Tax Relief, the increase is based on the upper end of the range being the highest growth in the last 3 years and the decrease is based on the average growth rate in the last 3 years.

4.1.5. Corporation tax reliefs – R&D error and fraud

An estimate of error and fraud has been included in these accounts since 2019 to 2020 in response to the increasing take up of these reliefs over recent years. We first undertook a Random Enquiry Programme (REP) for Small and Medium Enterprise (SME) claims based on a random sample of 500 claims received in 2020 to 2021. 2023 to 2024 is the second year we have used a REP to estimate error and fraud for SMEs. Given the lag between R&D expenditure and the filing deadline for making R&D claims and amendments, the sample taken related to claims received in 2021 to 2022, relating to the financial years 2019 to 2020, 2020 to 2021 and 2021 to 2022.

Therefore, we are reporting an updated estimate of error and fraud relating to the financial year 2021 to 2022 in these Accounts. We are also providing an illustrative estimate for 2023 to 2024 based on legislative changes and operational measures to reduce error and fraud. See the last paragraph of this note for further details.

For large businesses (LB) claiming RDEC, the estimate is derived using a combination of data for the population reviewed through our compliance processes due to the involvement of dedicated Customer Compliance Managers who work with large businesses eligible for RDEC reliefs, and an estimate for the remaining population using comparable error rates from Tax Gaps. HMRC analysts have used 2021 to 2022 compliance data from our Large Business team, to estimate the error and fraud within the R&D tax relief expenditure for Large Business customers claiming RDEC in 2021 to 2022. For LB claiming RDEC, the approach is similar to that used to calculate R&D error and fraud in previous years.

Estimated value of R&D error and fraud and as a percentage of the estimated R&D tax relief expenditure

	Estimate of the rate of error and fraud	2021-22 Implied monetary value of error and fraud £bn
Error and fraud – SME scheme (note 1)	25.8%	1.2
Error and fraud – RDE (note 2 and 3)	4.6%	0.1
Error and fraud – Total R&D tax relief expenditure (note 4)	17.6%	1.3

Notes:

1. Revised figures for 2021 to 2022 – the estimated rate of error and fraud for SME scheme for 2021 to 2022 previously reported in Annual Report & Accounts was 7.3% (£430 million) of the expenditure estimate originally reported for 2021 to 2022.
2. Revised figures for 2021 to 2022 – the estimated rate of error and fraud for RDEC for 2021 to 2022 previously reported in Annual Report & Accounts was 1.1% (£39 million) of the expenditure estimate originally reported for 2021 to 2022.
3. RDEC includes claims made by LB and SME claiming RDEC.
4. Revised figures for 2021 to 2022 – previously reported in Annual Report & Accounts: estimated rate of error and fraud for total R&D tax relief expenditure for 2021 to 2022 was 4.9% (£469 million).

For the SME estimate, we estimated ranges which illustrate a 95% confidence interval for the error and fraud estimate. The rate of error and fraud in the SME scheme for 2021 to 2022 is not statistically different from the rate for 2020 to 2021 and reflects natural variability in the results based on a sample of cases.

For LB claiming RDEC, given the assumption‑based methodology used to calculate error and fraud, statistical confidence intervals cannot be calculated. Therefore, upper, and lower bounds have been derived based on best and worst‑case scenarios for the rate of error and fraud within the non‑reviewed populations. For the upper estimate we assume the level of risk in the non‑reviewed population is 4%. For the lower estimate, we assume there is no risk in the non‑reviewed population, as in the reviewed population.

Whilst we attempt to capture all reasonable possibilities within our ranges, they do not exhaust the range of reasonable possible outcomes and it is possible that actual values may fall outside the ranges.

Applying the resultant lower, middle, and upper bound rates for SME and LB claiming RDEC to the estimated R&D corporation tax relief expenditure for the financial year 2021 to 2022 (as reported in the Resource Accounts for 2021 to 2022) gives the results below. The overall rate of error and fraud in total R&D expenditure across the SME and RDEC schemes for 2021 to 2022 is not statistically different from 2020 to 2021.

	Lower bound £bn	Lower bound %	Most likely £bn	Most likely %	Upper bound £bn	Upper bound%
SME scheme	0.95	20.5	1.20	25.8	1.58	33.9
RDEC scheme	0.10	3.3	0.14	4.6	0.18	6.2
Combined	1.05	13.8	1.34	17.6	1.76	23.2

Also impacting the quantitative estimates of error and fraud for 2021 to 2022 are revisions to the estimated expenditure base of R&D corporation tax reliefs for that year. As explained in note 4.1.4 there are timing lags between companies’ accounting periods during which underlying R&D expenditure is incurred and submission of their corporation tax returns, and R&D relief claims related to that year. Our estimates of reliefs expenditure are therefore revised over a 5‑year period after which they are considered final, and an adjustment is made to each year’s expenditure base for the final change in estimate relating to the period 5 years preceding. We have used the latest estimate for 2021 to 2022 which decreases the expenditure base and reflects overestimations in earlier estimates.

	2021-22 expenditure initially estimated	Final adjustment relating to 2016-17	Total expenditure reported in 2021-22 Annual Report and Accounts	Updated estimate for 2021-22
	£m	£m	£m	£m
R&D SME	4,990.3	905.3	5,895.6	4,655.9
RDEC	2,775.5	844.8	3,620.3	2,940.4
Total	7,765.8	1,750.1	9,515.9	7,596.3

Quantifications for error and fraud in subsequent years’ expenditure, including for that reported in these accounts, will be performed once relevant available data is available. While the above results are indicative of higher levels of error and fraud than previously estimated, applying the rates above to estimates of subsequent years’ expenditure would not give a reliable estimate of error and fraud in those years. There is considerable uncertainty ahead of performing random enquiries for these years because of policy and operational measures introduced to the R&D schemes, which have been designed to reduce the rate of error and fraud.

For illustrative purposes, we have considered the possible error and fraud position for 2023 to 2024 expenditure to take account of legislative changes and operational measures. The legislative changes include rate changes, extending relief to data and cloud computing costs and the mandation of digital claims requiring additional information (including pre‑notification of some claims). Taking account of the estimated level of expenditure in 2023 to 2024 (£7.7 billion excluding a final adjustment relating to 2018 to 2019) and the quantification of legislative and operational changes on the error and fraud rate, this would suggest error and fraud of £601 million in total across the SME scheme and RDEC (equating to 7.8% of total relevant expenditure). This is a reduction from the illustrative estimate of 13.3% (£1.1 billion of total relevant expenditure) prepared for 2022 to 2023. The level of error and fraud for the SME scheme in 2023 to 2024 is estimated at £475 million, or 14.6% of expenditure and £125 million, or 2.8% of expenditure for the RDEC scheme. For the SME scheme the central error and fraud rate is estimated to be 14.6% with an upper range of around 17% and a lower range of around 11%. The lower rates of error and fraud in 2023 to 2024 reflect the policy changes and operational measures that HMRC has implemented to tackle error and fraud.

4.2. Child Benefit

From 2023 to 2024 the method of measuring Child Benefit error and fraud (E&F) has changed to a monthly sampling approach. To estimate the level of E&F in the Child Benefit population, a random sample of 300 claimants has been drawn from the population for each month between March 2023 to November 2023, and asked to provide evidence that they are eligible for Child Benefit for the month under investigation, with casework concluding in March 2024. In previous years, we have selected the full sample of 2,700 claimants from the August Child Benefit data and assessed their eligibility across a full year, with cases worked from October through to the following March. This methodology change means that estimates from 2023 to 2024 cannot be directly compared to previous years.

Prior to the move to monthly sampling, HMRC committed to developing new methodologies to estimate overpayments for non‑compliant non‑responders. This was because in the annual approach, for non‑compliant non‑responders, E&F was calculated from the period of suspension to the end of the tax year only without any backdating of earlier non‑compliance, meaning that E&F was likely being under‑reported for this group. Therefore, we expected that the E&F rate would increase this year as we now take full account of the duration of E&F for all cases. Due to differences in the operational arrangements for running the annual and monthly sample enquiries, there is no opportunity to dual run the old and new estimates. The decision to move to a monthly sampling approach brings us in line with best practice methodologies used in other Government departments. The move also makes it easier to assess the duration of error and fraud, the main deficiency in the annual method, as an assessment of eligibility is only required within each month, rather than for the full tax year. After all monthly samples are worked, the individual E&F estimates are combined to give an annual estimate of E&F.

In 2023 to 2024, the vast majority of claimants (86.4%) responded to these compliance requests providing the necessary evidence to prove their eligibility, while a small number (1.3%) informed HMRC that they are ineligible for Child Benefit (and so their claim is in error and fraud).

12.3% failed to respond to the compliance request. To determine whether these non‑responder claimants should be considered compliant or non‑compliant they were put through a Desk‑Based Analysis model, which uses other information HMRC holds on these claimants.

This analysis concluded that 10.5% of these claims were most likely to be non‑compliant and 89.5% were likely to be compliant.

The largest reason for error and fraud in customers who responded to the enquiry was Full Time Non‑Advanced Education (FTNAE) issues (67%), where claims have continued for children who have left FTNAE.

It is important to note that the results of our random enquiry programmes do not suggest that Child Benefit error and fraud has materially increased since the previous year. The number of cases in error and fraud has not increased in the latest year. However, the new monthly sampling approach addresses previous under‑reporting of the value of E&F for non‑compliant non‑responders, making the overall E&F rate estimate more accurate. The 2023 to 2024 current estimates are not directly comparable to previous estimates because of the methodology changes.

Estimated value of Child Benefit error and fraud and as a percentage of estimated Child Benefit expenditure

	2023-24 Lower bound £m	2023-24 Central estimate £m	2023-24 Upper bound £m	2022-23 Lower bound £m	2022-23 Central estimate £m	2022-23 Upper bound £m
Child Benefit error and fraud (note 1)	150 (1.2%)	200 (1.6%)	250 (2.0%)	70 (0.6%)	90 (0.8%)	110 (1%)

Note 1: Figures are not comparable between years due to improvements in estimation methodology to better account for the duration of E&F for non‑compliant non‑responders.

4.3. Tax-Free Childcare

A Tax‑Free Childcare (TFC) Error and Fraud (E&F) estimate is included in this year’s report to reflect increased availability of robust modelling data since the inception of the scheme in April 2017 when only limited samples were available.

E&F in TFC can arise either through the customer having been found to not meet one or more of the eligibility criteria at the point of reconfirmation, occurring every 3 months, or through using top up to pay a childcare provider for something other than qualifying childcare.

HMRC developed and implemented an ongoing annual Error and Fraud Analytical Programme (EFAP) for TFC, starting in 2021. The exercise uses a stratified random sample to select 1,440 households (120 per month) across a calendar year for a full compliance investigation, and results are weighted to the TFC population level to give our best estimate of E&F in TFC for the year. The calendar year estimate is then used as a proxy for the reporting year (i.e. using the 2023 E&F estimate for tax year 2023 to 2024). This allows time for operational and analytical work to conclude for publication in the Resource Accounts.

The central estimates of TFC E&F in 2021 and 2022 were 2.3% and 2.2% of government top up, respectively. The central estimate for 2023 is 2.3%, with a 95% confidence interval of 1.2% to 3.5%. This is equivalent to £14 million and is within the confidence range of the 2021 and 2022 estimates.

Based on results to date, the sample size of 1,440 gives an accuracy of +/‑ 0.5%. For example, if the true E&F rate was 2%, the central estimate from EFAP could be anywhere between 1.5% and 2.5%. Note that accuracy is a separate measure to precision. Accuracy describes how close an estimate is to its true value (which is unknown), whereas precision describes statistical or sampling variability, and is expressed in the 95% confidence interval around the central estimate.

5. Property, plant and equipment

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Land (2023-24) £m (note 1)	Buildings (2023-24) £m (note 1)	Accommodation refurbishments (2023-24) £m (note 1)	Office and computer equipment (2023-24) £m	Vehicles (2023-24) £m	Furniture and fittings (2023-24) £m	Assets under construction (2023-24) £m	Scientific aids (2023-24) £m	Total (2023-24) £m
Cost or valuation
At 31 March 2023	20.4	94.7	436.4	318.8	16.8	68.4	35.8	0.4	991.7
IFRS 16 adjustment (note 1)	–	1.2	22.1	–	-	–	–	–	23.3
Balance at 1 April 2023	20.4	95.9	458.5	318.8	16.8	68.4	35.8	0.4	1,015.0
Additions	18.1	‑	‑	26.8	1.6	1.1	22.6	‑	70.2
Disposals	(6.6)	(18.5)	(34.0)	(19.5)	(1.8)	(2.7)	‑	(0.3)	(83.4)
Impairments	‑	‑	‑	‑	‑	‑	‑	‑	‑
Reclassifications	23.5	96.4	1.6	6.2	‑	0.4	(31.3)	‑	96.8
Revaluations (note 2)	‑	113.4	‑	‑	‑	‑	‑	‑	113.4
At 31 March 2024	55.4	287.2	426.1	332.3	16.6	67.2	27.1	0.1	1,212.0
Depreciation
At 31 March 2023	‑	(72.3)	(83.8)	(198.1)	(11.2)	(14.7)	‑	(0.3)	(380.4)
IFRS16 adjustment (note 1)	‑	(0.2)	0.5	‑	‑	‑	‑	‑	0.3
Balance at 1 April 2023	‑	(72.5)	(83.3)	(198.1)	(11.2)	(14.7)	‑	(0.3)	(380.1)
Charged in year	(0.1)	(6.4)	(22.2)	(41.3)	(1.1)	(6.1)	‑		(77.2)
Disposals	‑	5.5	33.1	18.9	1.6	1.6	‑	0.3	61.0
Impairments	‑	‑	‑	‑	‑	‑	‑	‑	‑
Reclassifications	‑	‑	5.1	‑	‑	‑	‑	‑	5.1
Revaluations (note 2)	‑	(103.5)	‑	‑	‑	‑	‑	‑	(103.5)
At 31 March 2024	(0.1)	(176.9)	(67.3)	(220.5)	(10.7)	(19.2)	-	-	(494.7)
Carrying amount at 31 March 2023	20.4	22.4	352.6	120.7	5.7	53.7	35.8	0.1	611.4
Carrying amount at 31 March 2024	55.3	110.3	358.8	111.8	5.9	48.0	27.1	0.1	717.3
Of the total:
Core department	55.3	110.3	354.9	111.8	5.9	47.8	27.1	0.1	713.2
Valuation Office Agency	‑	‑	3.9	‑	‑	0.2	‑	‑	4.1
Carrying amount	55.3	110.3	358.8	111.8	5.9	48.0	27.1	0.1	717.3
The assets are financed as follows:
Owned	55.3	96.9	109.0	109.9	5.9	46.3	27.1	0.1	450.5
Developer contribution funded	‑	‑	249.8	‑	‑	1.7	‑	‑	251.5
PFI contracts	‑	13.4	‑	1.9	‑	‑	‑	‑	15.3
Carrying amount at 31 March 2024	55.3	110.3	358.8	111.8	5.9	48.0	27.1	0.1	717.3

	Land (2022-23) £m (note 1)	Buildings (2022-23) £m (note 1)	Accommodation refurbishments (2022-23) £m (note 1)	Office and computer equipment (2022-23) £m	Vehicles (2022-23) £m	Furniture and fittings (2022-23) £m	Assets under construction (2022-23) £m	Scientific aids (2022-23) £m	Total (2022-23) £m
Cost or valuation
At 1 April 2022	6.6	104.7	331.3	294.9	15.8	63.1	159.2	3.0	978.6
Additions	‑	‑	0.1	21.9	1.7	1.4	37.3	‑	62.4
Donations	‑	‑	‑	‑	‑	‑	‑	‑	‑
Disposals	‑	‑	(7.7)	(14.6)	(0.9)	(7.7)	‑	(2.6)	(33.5)
Impairments	‑	‑	(7.2)	‑	‑	‑	‑	‑	(7.2)
Reclassifications	13.8	‑	119.9	16.6	0.3	11.6	(160.7)	‑	1.5
Revaluations (note 1)	‑	(10.0)	‑	‑	‑	‑	‑	‑	(10.0)
At 31 March 2023	20.4	94.7	436.4	318.8	16.9	68.4	35.8	0.4	991.8
Depreciation
At 1 April 2022	‑	(76.8)	(53.1)	(173.1)	(11.1)	(12.0)	‑	(2.8)	(328.9)
Charged in year	‑	(2.8)	(35.0)	(37.5)	(1.0)	(6.4)	‑	‑	(82.7)
Disposals	‑	‑	4.3	12.5	0.9	3.7	‑	2.5	23.9
Impairments	‑	‑	‑	‑	‑	‑	‑	‑	‑
Reclassifications	‑	‑	‑	‑	‑	‑	‑	‑	‑
Revaluations (note 1)	‑	7.3	‑	‑	‑	‑	‑	‑	7.3
At 31 March 2023	-	(72.3)	(83.8)	(198.1)	(11.2)	(14.7)	-	(0.3)	(380.4)
Carrying amount at 31 March 2022	6.6	27.9	278.2	121.8	4.7	51.1	159.2	0.2	649.7
Carrying amount at 31 March 2023	20.4	22.4	352.6	120.7	5.7	53.7	35.8	0.1	611.4
Of the total:
Core department	20.4	22.4	348.0	120.6	5.7	52.2	35.6	0.1	605.0
Valuation Office Agency	‑	‑	4.6	0.1	‑	1.5	0.2	‑	6.4
Carrying amount at 31 March 2023	20.4	22.4	352.6	120.7	5.7	53.7	35.8	0.1	611.4
The assets are financed as follows:
Owned	20.4	‑	101.9	115.1	5.7	51.8	35.8	0.1	330.8
Developer contribution funded	‑	‑	250.7	‑	‑	1.9	‑	‑	252.6
PFI contracts	‑	22.4	‑	5.6	‑	‑	‑	‑	28.0
Carrying amount at 31 March 2023	20.4	22.4	352.6	120.7	5.7	53.7	35.8	0.1	611.4

Notes:

1. This adjustment relates to a refinement in the application of HMRC’s IFRS16 subleasing policy which results in an increase in the number of operating subleases and a corresponding reduction in finance subleases.
2. Analysis of right‑of‑use assets is now excluded from these comparatives.

Property revaluation

Valuations were performed by the Valuation Office Agency, an executive agency of HM Revenue and Customs, whose services include providing valuation and estate surveying services to government departments.

6. Intangible assets

	2023-24 Licences £m	2023-24 Software and website Development (note 1) £m	2023-24 Assets under Construction (note 1) £m	2023-24 Total £m
Cost or valuation
At 1 April 2023	79.1	4,888.7	836.3	5,804.1
Additions	31.2	0.1	693.8	725.1
Disposals	(22.5)	(361.6)	(2.5)	(386.6)
Impairments	‑	(14.5)	‑	(14.5)
Reclassifications	18.8	520.3	(539.6)	(0.5)
Revaluation (note 2)	‑	449.7	‑	449.7
At 31 March 2024	106.6	5,482.7	988.0	6,577.3
Amortisation
At 1 April 2023	(42.4)	(3,356.3)	‑	(3,398.7)
Charged in year	(27.0)	(365.3)	‑	(392.3)
Disposals	22.7	349.0	‑	371.7
Impairments	‑	‑	‑	‑
Reclassifications	‑	‑	‑	‑
Revaluation (note 2)	‑	(298.6)	‑	(298.6)
At 31 March 2024	(46.7)	(3,671.2)	-	(3,717.9)
Carrying amount at 31 March 2023	36.7	1,532.4	836.3	2,405.4
Carrying amount at 31 March 2024	59.9	1,811.5	988.0	2,859.4
The assets are financed as follows:
Owned	59.9	1,811.5	988.0	2,859.4
PFI contracts	‑	‑	‑	‑
Carrying amount at 31 March 2024	59.9	1,811.5	988.0	2,859.4
Of the total:
Core department	59.9	1,796.7	915.5	2,772.1
Valuation Office Agency	‑	14.8	72.5	87.3
Carrying amount at 31 March 2024	59.9	1,811.5	988.0	2,859.4

	2022-23 Licences £m	2022-23 Software and website development (note 1) £m	2022-23 Assets under construction (note 1) £m	2022-23 Total £m
Cost or valuation
At 1 April 2022	87.4	4,153.4	786.1	5,026.9
Additions	19.6	‑	560.4	580.0
Disposals	(36.8)	(48.2)	‑	(85.0)
Impairments	‑	(3.5)	‑	(3.5)
Reclassifications	8.9	499.8	(510.2)	(1.5)
Revaluation (note 2)	‑	287.2	‑	287.2
At 31 March 2023	79.1	4,888.7	836.3	5,804.1
Amortisation
At 1 April 2022	(47.7)	(2,901.4)	‑	(2,949.1)
Charged in year	(30.7)	(299.4)	‑	(330.1)
Disposals	36.4	43.8	‑	80.2
Impairments	‑	‑	‑	‑
Reclassifications	(0.4)	0.4	‑	‑
Revaluation (note 2)	‑	(199.7)	‑	(199.7)
At 31 March 2023	(42.4)	(3,356.3)	-	(3,398.7)
Carrying amount at 31 March 2022	39.7	1,252.0	786.1	2,077.8
Carrying amount at 31 March 2023	36.7	1,532.4	836.3	2,405.4
The assets are financed as follows:
Owned	36.7	1,532.4	836.3	2,405.4
PFI contracts	‑	‑	‑	‑
Carrying amount at 31 March 2023	36.7	1,532.4	836.3	2,405.4
Of the total:
Core department	36.7	1,526.4	786.6	2,349.7
Valuation Office Agency	‑	6.0	49.7	55.7
Carrying amount at 31 March 2023	36.7	1,532.4	836.3	2,405.4

Note 1: Software and Website Development asset class includes material assets for Customs Declaration Service (CDS) which relate to declarations for all goods, including excise goods and those that move through all routes including maritime ports. The carrying amount for these at 31 March 2024 is £704 million (2022 to 2023: £577 million). Additionally, the assets under construction asset class includes CDS assets with a carrying amount at 31 March 2024 of £44 million (2022 to 2023: £31 million).

7. Leases

7.1. Right-of-use assets recognised in Statement of Financial Position

		2023-24 Buildings	2023-24 Vehicles	2023-24 Departmental group Total £m
Cost:	At 31 March 2023	1,094.7	2.1	1,096.8
	IFRS 16 adjustment (note 1)	127.8	-	127.8
	Balance at 1 April 2023	1,222.5	2.1	1,224.6
	Additions	9.4	2.9	12.3
	Disposals	(14.3)	-	(14.3)
	Cost reclassification	(110.1)	-	(110.1)
	Revaluations	-	-	-
Depreciation:	At 31 March 2023	(67.6)	(0.8)	(68.4)
	IFRS 16 adjustment (note 1)	1.4	-	1.4
	Balance at 1 April 2023	(66.2)	(0.8)	(67.0)
	Charged in‑year	(69.1)	(1.2)	(70.3)
	Disposals	5.5	-	5.5
	Depreciation reclassification	8.7	-	8.7
Carrying amount:	at 31 March 2024	986.4	3.0	989.4

		2022-23 Buildings	2022-23 Vehicles	2022-23 Departmental group Total £m
Cost:	At 1 April 2022	1,164.4	1.6	1,166.0
	Additions	2.0	0.5	2.5
	Disposals	(71.5)	-	(71.5)
	Revaluations	(0.2)	-	(0.2)
Depreciation:	At 1 April 2022	(0.1)	-	(0.1)
	Charged in‑year	(67.7)	(0.8)	(68.5)
	Disposals	0.2	-	0.2
Carrying amount:	at 31 March 2023	1,027.1	1.3	1,028.4

Note 1: This adjustment relates to a refinement in the application of HMRC’s IFRS 16 subleasing policy which results in an increase in the number of operating subleases and a corresponding reduction in finance subleases.

7.2. Lease liabilities recognised in Statement of Financial Position – Maturity analysis

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Buildings
Not later than one year	77.4	77.4	80.8	80.8
Later than one year and not later than 5 years	307.4	307.4	351.8	351.8
Later than 5 years	1,010.1	1,010.1	1,154.0	1,154.0
Less interest element	153.6	153.6	176.7	176.7
Present Value of obligations	1,241.3	1,241.3	1,409.9	1,409.9
Vehicles
Not later than one year	0.7	0.7	0.4	0.4
Later than one year and not later than 5 years	2.6	2.6	1.0	1.0
Later than 5 years	-	-	-	-
Less interest element	0.1	0.1	-	-
Present Value of obligations	3.2	3.2	1.4	1.4
Total Present Value of obligations	1,244.5	1,244.5	1,411.3	1,411.3
Current portion	63.0	63.0	65.5	65.5
Non‑current portion	1,181.5	1,181.5	1,345.8	1,345.8

7.3. Amounts recognised in Statement of Comprehensive Net Expenditure

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Interest paid to lessor	15.6	15.6	14.6	14.6
Depreciation	71.8	71.8	68.5	68.5
Variable lease payments not included in leaseliabilities	(0.2)	(0.2)	(3.7)	(3.7)
Non‑recoverable VAT	14.8	14.8	16.3	16.3
Expenses related to short‑term leases	0.1	0.1	5.2	5.2
Expenses related to low value asset leases (excluding short‑term leases)	-	-	0.2	0.2
Income from sub‑leasing	(29.1)	(29.1)	(8.6)	(8.6)
Total charged to the Statement of Comprehensive Net Expenditure under IFRS 16	73.0	73.0	92.5	92.5

Total charged to the Statement of Comprehensive Net Expenditure under IFRS 16 above is materially the same as would have been charged under IAS 17.

7.4. Amounts recognised in Consolidated Statement of Cash Flows

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Total cash outflow for leases	(77.9)	(77.9)	(100.0)	(100.0)

Commitments under PFI and other service concession arrangements

8.1. Off-Statement of Financial Position

The department has no off‑Statement of Financial Position PFI contracts.

8.2. On-Statement of Financial Position

The following commitments are in respect of assets that have been brought onto the department’s Statement of Financial Position under IAS 17 and IFRIC 12 Service Concession Arrangements. These comprise of commitments relating to Newcastle Estates Partnership (NEP) held with DWP and commitments in relation to IT infrastructure.

The total amount charged in the Consolidated Statement of Comprehensive Net Expenditure in respect of on‑Statement of Financial Position PFI and other service concession arrangement transactions (there were no off‑Statement of Financial Position transactions) was £49.6 million (2022 to 2023: £97.8 million). This amount is included within the figures reported in note 2 as PPP and PFI service charges.

The substance of each contract is that payments comprise 2 elements – lease payments and service elements.

Details of the obligations for lease payments

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Minimum lease payments:
Due within one year	7.9	7.9	11.7	11.7
Due between one year and 5 years	10.6	10.6	34.2	34.2
Due later than 5 years	-	-	-	-
Total minimum lease payments due in future periods	18.5	18.5	45.9	45.9

Details of the obligations for service elements

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Service elements due in future periods:
Due within one year	31.7	31.7	33.1	33.1
Due between one year and 5 years	52.5	52.5	68.5	68.5
Due later than 5 years	-	-	-	-
Total service elements due in future periods	84.2	84.2	101.6	101.6
Total commitments	102.7	102.7	147.5	147.5

8.3. Capital commitments

The capital commitments reported relate to the future cost of development of the estate and IT infrastructure.

Contracted capital commitments at 31 March not otherwise included in these financial statements

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Property, plant, and equipment	14.4	14.4	0.2	0.2
Intangible assets	19.5	19.5	23.2	23.2
Total	33.9	33.9	23.4	23.4

8.4. Other financial commitments

This note discloses commitments to future expenditure, not otherwise disclosed elsewhere in the financial statements. The department has entered into non‑cancellable contracts which are not a lease, PFI contract or other service concession arrangement.

Payments to which the department are committed

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Due within one year	306.8	306.8	346.3	346.3
Due between one year and 5 years	333.8	333.8	201.6	201.6
Due later than 5 years	10.2	10.2	3.3	3.3
Total	650.8	650.8	551.2	551.2

9. Trade receivables, financial and other asset

		2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Note	Core department and agency	Departmental group	Core department and agency	Departmental group
Amounts expected to be received within one year:
Personal tax credits	4.1.2	434.9	434.9	464.8	464.8
Child Benefit (note 1)		157.2	157.2	136.4	136.4
Statutory Sick Pay Rebate – (DWP)		0.3	0.3	0.3	0.3
Help to Save		11.1	11.1	9.3	9.3
Trade receivables		5.3	5.3	3.9	4.6
Receivable as intermediate lessor		0.2	0.2	5.1	5.1
Other receivables (note 2)		60.3	60.3	50.4	50.4
Deposits and advances		161.4	161.4	137.9	137.9
Value Added Tax		59.7	59.7	56.9	56.3
Prepayments – Child Benefit		-	-	37.8	37.8
Accrued income, other prepayments		202.3	202.3	133.8	133.8
RCDTS Ltd funding (note 3)		-	-	0.5	-
Total		1,092.7	1,092.7	1,037.1	1,036.7
Amounts expected to be received in more than one year:
Personal tax credits	4.1.2	1,112.4	1,112.4	1,129.0	1,129.0
Receivable as intermediate lessor		-	-	121.1	121.1
Total		1,112.4	1,112.4	1,250.1	1,250.1

Note 1: This figure is net of provision for impairment amounting to £28.2 million (2022 to 2023: £28.2 million).

Note 2: This figure is net of provision for impairment amounting to departmental group: £22.8 million (2022 to 2023 departmental group: £21.2 million).

Note 3: HMRC funded RCDTS Ltd for general working capital and investment purposes. This was previously accounted for as a long-term loan arrangement but now reflects the closure of RCDTS Ltd.

10. Cash and cash equivalents

Cash and bank balances relate to the administering of the department and programme expenditure but exclude all tax and duty revenues collected. The latter are included in the department’s Trust Statement. Cash and cash equivalents comprise cash in hand and current balances, which are readily convertible to known amounts of cash and which are subject to insignificant changes in value. Bank accounts are part of the Exchequer pyramid whereby balances are effectively held overnight with the Bank of England.

Cash and cash equivalents

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Balance at 1 April	77.9	78.6	4,701.5	4,706.2
Net change in cash and cash equivalent balances	(36.9)	(37.6)	(4,623.6)	(4,627.6)
Balance at 31 March	41.0	41.0	77.9	78.6
Of which balances were held at:
Government Banking Service	47.9	47.9	92.3	93.1
Commercial banks and cash in hand (note 1)	(6.9)	(6.9)	(14.4)	(14.5)
Balance at 31 March	41.0	41.0	77.9	78.6

Note 1: The balance also reflects money owing to/from the Trust Statement.

10.1. Reconciliation of liabilities arising from financing activities

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	Balance at 31 March 2023 £m	Opening Balance Adjustment £m	Financing cash flows £m	Cash flows £m	Non-cash changes £m	Non-cash changes £m	Balance at 31 March 2024 £m
				Net cash requirement	Acquisition	Disposal
Supply – current year	72.3	-	20,591.5	(20,628.3)	-	-	35.5
From the National Insurance Fund	(8.7)	12.5	272.1	(281.4)	-	-	(5.5)
Lease liabilities	1,448.5	21.0	(70.6)	-	13.2	(150.1)	1,262.0
Total liabilities from financing activities	1,512.1	33.5	20,793.0	(20,909.7)	13.2	(150.1)	1,292.0

	Balance at 31 March 2022 £m	IFRS 16 adoption adjustment £m	Financing cash flows £m	Cash flows £m	Non-cash changes £m	Non-cash changes £m	Balance at 31 March 2023 £m
				Net cash requirement	Acquisition	Disposal
Supply – current year	4,694.5	-	14,194.3	(18,816.5)	-	-	72.3
From the Trust Statement	-	-	21,148.8	(21,148.8)	-	-	-
From the National Insurance Fund	(4.2)	-	258.8	(263.3)	-	-	(8.7)
Lease liabilities	45.5	1,515.1	(86.2)	-	8.2	(34.1)	1,448.5
Total liabilities from financing activities	4,735.8	1,515.1	35,515.7	(40,228.6)	8.2	(34.1)	1,512.1

11. Trade and other payables

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Amounts expected to be paid within one year:
Personal tax credits	399.0	399.0	377.3	377.3
Child Benefit and Tax‑Free Childcare	298.2	298.2	393.2	393.2
Trade payables	31.9	31.9	(2.0)	(2.0)
Taxation and social security excluding VAT	62.2	62.2	61.5	61.5
Other payables	116.9	116.9	88.8	88.8
Accruals – COVID‑19 support schemes	0.1	0.1	0.1	0.1
Accruals – corporation tax reliefs	9,359.4	9,359.4	9,009.3	9,009.3
Other accruals	573.7	573.7	549.1	549.4
Deferred income	13.2	13.2	16.7	16.7
Amounts issued from the Consolidated Fund for Supply but not spent at year end	35.5	35.5	72.3	72.3
Consolidated Fund Extra Receipts due to be paid to the Consolidated Fund
Received	5.6	5.6	5.6	5.6
Total	10,895.7	10,895.7	10,571.9	10,572.2
Amounts expected to be paid in more than one year:
Accruals – corporation tax reliefs	1,863.7	1,863.7	1,814.3	1,814.3
IT Public Private Partnership	1.7	1.7	2.7	2.7
Accommodation PFI	9.5	9.5	25.0	25.0
Accommodation non‑PFI	-	-	3.6	3.6
Other payables	6.6	6.6	-	-
Total	1,881.5	1,881.5	1,845.6	1,845.6

12. Provisions for liabilities and charges

Provisions are recognised when HMRC has a present legal or constructive obligation as a result of a past event, it is probable that HMRC will be required to settle that obligation, and an amount has been reliably estimated.

Provisions for liabilities and charges

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Balance at 1 April	159.3	159.3	157.9	157.9
Provided in the year	38.0	38.0	52.4	52.4
Provisions not required written back	(52.3)	(52.3)	(31.4)	(31.4)
Net expenditure	(14.3)	(14.3)	21.0	21.0
Provisions utilised in the year	(14.7)	(14.7)	(19.6)	(19.6)
Balance at 31 March	130.3	130.3	159.3	159.3

12.1. Analysis of expected timing of discounted flows

	2023-24 £m	2023-24 £m	2022-23 £m	2022-23 £m
	Core department and agency	Departmental group	Core department and agency	Departmental group
Not later than one year	22.3	22.3	26.0	26.0
Later than one year and not later than 5 years	61.5	61.5	124.2	124.2
Later than 5 years	46.5	46.5	9.1	9.1
Balance at 31 March	130.3	130.3	159.3	159.3

	Child Trust Fund £m	Legal claims £m	Accommodation costs £m	Other £m	Total £m
Not later than one year	0.1	11.5	1.4	9.3	22.3
Later than one year and not later than 5 years	0.3	53.5	7.3	0.4	61.5
Later than 5 years	-	40.6	5.3	0.6	46.5
Balance at 31 March	0.4	105.6	14.0	10.3	130.3

12.2. Child Trust Fund

Child Trust Fund (CTF) endowments; eligibility to which ceased on 3 January 2011, provided assistance with the funding on long‑term individual savings and investment accounts provided by approved financial institutions. A provision of £0.4 million was retained for general CTF payments amounts forecast to become payable in respect of children qualifying for CTF endowments.

12.3. Legal claims

A provision of £105.6 million (2022 to 2023: £131.8 million) has been made for costs relating to various legal claims against the department. The provision reflects all known claims, where legal advice indicates that it is probable that the claim will be successful.

12.4. Accommodation costs

A provision of £14.0 million has been made (2022 to 2023: £14.9 million) for buildings related claims giving rise to probable liabilities under tenancy agreements.

12.5. Other

Provisions relating to various other claims against the department amount to £10.3 million (2022 to 2023: £12.2 million).

13. Pension asset/liability

The Valuation Office Agency merged with The Rent Service on 1 April 2009, taking on staff who are members of the Local Government Pension Scheme. The pension assets part of the Local Government Pension Scheme are reflected in the Consolidated Statement of Financial Position.

14. Contingent liabilities

The department’s contingent liabilities are possible obligations that arise from past events and for which existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within HMRC’s control. An example is legal action where the department may need to pay legal costs if it loses the case. These are not disclosed where disclosure could seriously prejudice the outcome of legal claims against the department.

The department has the following quantifiable contingent liabilities:

• legal claims – a contingent liability of £129.2 million (2022 to 2023: £139.4 million) exists for costs that may be awarded should various legal cases in which HMRC is involved be determined against the department. The contingent liability covers all such cases where the outcome is unknown or cannot be estimated reliably.

• guaranteed costs – possible liability where appointed liquidators have been guaranteed payment of their costs with a view to recovery of outstanding tax liabilities £0.7 million, 32 cases (2022 to 2023: £0.7 million, 43 cases)

• other – the department has a further number of contingent liabilities amounting to £127.3 million (2022 to 2023: £55.7 million)

15. Related‑party transactions

The department is the parent of the Valuation Office Agency. This body is regarded as a related party with which the department has had various material transactions during the year.

The Valuation Office Agency has had a significant number of material transactions with other government departments. Most of these transactions have been with the Department for Levelling Up, Housing and Communities, the Department for Work and Pensions and the Welsh Government.

In addition, the department has had a small number of transactions with other government departments and other central government bodies.

No Board member, key manager or other related party has undertaken any material transactions (meaning transactions of £0.1 million or more) with the department during the year. Details of compensation for key management personnel can be found in the remuneration report within the accountability section.

16. Entities within the departmental boundary

The Valuation Office Agency is a supply‑financed agency. Its Annual Report and Accounts are published at www.voa.gov.uk.

17. Investments and loans in other public sector bodies

The department holds no ordinary shares, loans, public dividend capital or other interests in public bodies outside the departmental boundary.

18. Events after the reporting period date

There are no reportable events after the reporting period.

These accounts have been authorised for issue by the Accounting Officer on the same date as the Comptroller and Auditor General’s Audit Certificate.

Glossary to the financial statements

Accrued Revenue Payable (ARP) – there are 3 distinct types of ARP. These comprise:

1. amounts due to traders that have an established revenue repayment claim relating to the financial year, but the date the claim is received is after the end of the reporting period
2. amounts of receivables and accrued revenue receivable that will, when received, be passed to a third‑party, for example national insurance contributions due to the National Insurance Funds and National Health Services
3. amounts in respect of Corporation Tax and Income Tax likely to be repayable by HMRC pending finalisation of tax payer liabilities

Accrued Revenue Receivable (ARR) – ARR represents taxes and duties relating to the financial year that are not yet due or received from taxpayers, where these have not been included in receivables.

Administration costs – these relate to the internal administration costs of running the department, for example human resources, finance, estates management, and includes both costs and associated operating income.

Amortisation – this is the method of spreading the cost of a non‑current intangible asset over its useful life.

Annually Managed Expenditure (AME) – departments are allocated a separate annually managed spending limit. AME is more volatile than DEL expenditure and therefore is more difficult to explain or control as it is spent on programmes which are demand‑led – such as tax credits or Child Benefit.

Appropriation (to Resource Accounts) – these are amounts transferred to the Resource Accounts for the purposes of financing tax reliefs.

CFER – Consolidated Fund Extra Receipts. This is income which the department is not entitled to retain and it is passed over to HM Treasury.

Consolidated Fund – the Consolidated Fund is the government’s general bank account at the Bank of England. Payments from this account must be authorised in advance by the House of Commons.

Consolidated Statement of Cash Flows (CSoCF) – a statement that reports the cash flows during the financial year from operating, investing and financing activities.

Consolidated Statement of Changes in Taxpayers’ Equity (CSoCTE) – a statement which explains the movements in the department and departmental group’s net assets between the start and end of a financial year.

Consolidated Statement of Comprehensive Net Expenditure (CSoCNE) – this is the performance statement, the equivalent of the ‘Profit and Loss’ Account and Statement of Total Recognised Gains and Losses. It reports a summary of the departmental group’s expenditure and income for the financial year, along with its gains and losses.

Consolidated Statement of Financial Position (CSoFP) – this provides a snapshot of the assets and liabilities of the group as at the end of the reporting period.

Contingent liabilities – contingent liabilities are either present obligations that arise from past events where a payment to settle is less than probable, or possible obligations that arise from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within HMRC’s control. HMRC’s contingent liabilities comprise the latter. An example is legal action where the department may need to pay legal costs if it loses the case. These are not disclosed where disclosure could seriously prejudice the outcome of legal claims against the department.

Current assets – a current asset is cash and any other entity asset that will be turning to cash within one year from the department’s reporting date.

Current liabilities – a current liability is an obligation that is due within one year of the department’s reporting date.

Deferred revenue – this includes duties and taxes paid in the current year that relate to future accounting periods.

Departmental Expenditure Limits (DEL) – this is the spending budget that is allocated to and spent by government departments. This amount, and how it is split between government departments, is set at Spending Reviews on a 3 yearly basis. It is normally categorised as Capital DEL and Resource DEL. Departmental expenditure includes the running of the services and the everyday cost of resources such as staff. The DEL limit is tightly controlled by HM Treasury. A department’s expenditure is deemed to be DEL unless HM Treasury has specified otherwise.

Depreciation – this is the method of spreading the cost of a non‑current tangible asset over its useful life.

Disbursement (to Resource Accounts) – this is the transfer of amounts relating to tax reliefs to the Resource Accounts.

Excess Vote – if a department breached either the total resource‑based estimates or the cash limits this will result in an Excess Vote.

Finalisation (personal tax credits) – this is the process, occurring after the financial year end, by which claimants confirm their actual income and other circumstances for the previous award year. The award is finalised for the award year that has ended and appropriate adjustments for under or overpayments of tax credits are made.

Financial Reporting Manual (FReM) – this is the HM Treasury technical accounting guide to the preparation of financial statements for government.

IAS – International Accounting Standards (see IFRS below).

IASB – International Accounting Standards Board.

IFRIC – the IFRS Interpretations Committee (IFRIC) develop guidance on appropriate accounting treatment of particular issues. They are approved by the International Accounting Standards Board (IASB).

IFRS – International Financial Reporting Standards (also including International Accounting Standards). The Financial Statements of Government adopted IFRS from 2009 to 2010 as the basis for preparation of their accounts which were previously prepared under UK based Generally Accepted Accounting Practice (UK GAAP).

Impairment of accrued revenue receivables – the process of reducing accrued revenue receivables to a fair value that is likely to be collected.

Impairment of receivables – the process of reducing receivables to a fair value that is likely to be collected.

Import One Stop Shop (IOSS) – monthly VAT reporting and payment system for imports.

Indemnities – will be ordered by the court, on behalf of the insolvency practitioner or solicitors, in case the department has incorrectly wound up a viable business. These indemnities are unlimited, although we calculate a likely value for reporting purposes. The calculation is based on the likely amount that a business could be awarded in proceedings and the likelihood of a successful claim for that amount being made. The indemnity will be in place until the case is settled and the liquidation confirmed.

Intangible assets – these are non‑physical assets, for example, developed computer software and website development costs.

Losses – losses are made up of remissions and write‑offs. Remission is the process used to identify and separate receivables which the department has decided not to pursue, for example on the grounds of value for money. Write‑offs are receivables that are considered to be irrecoverable, for example because there is no practical means for pursuing them.

Managing Public Money – this is a HM Treasury publication giving guidance on how to handle public funds.

Negative tax – this occurs where the amount of the tax credit is less than or equal to the recipient’s tax liability.

Net cash requirement – the amount of funding that the department is entitled to draw down from the Consolidated Fund.

Non-current assets – an asset that is not likely to turn to cash or cash equivalent within one year of the department’s reporting date.

Non-current liabilities – a liability not due to be paid within one year of the department’s reporting date.

Non-voted expenditure – expenditure which is not subject to annual Parliamentary approval and in HMRC’s case mainly relates to tax credits and costs in respect of the National Insurance Fund.

One Stop Shop (OSS) – a quarterly VAT reporting and payment system for distance selling.

Payables – amounts recognised as owing by the department at the end of the reporting period but payment has not been made.

Payments of entitlement – this is the element of a relief which is in excess of the recipient’s tax liability.

Private Finance Initiative (PFI) – is a way of creating public‑private partnerships (PPPs) by funding public infrastructure projects with private capital.

Programme costs – these relate to the costs incurred in the delivery of front line services such as the parts of the department which interact directly with our external customers. In addition, it includes the payments made for tax credits, Child Benefit and other disbursements by the department. All expenditure and associated operating income for the Valuation Office Agency is treated as Programme.

Provisions for liabilities – these are recognised when HMRC has a present legal or constructive obligation as a result of a past event, it is probable that HMRC will be required to settle that obligation and an amount has been reliably estimated.

Quarterly Instalment Payments (QIPs) – Corporation Tax for large onshore companies paid by 4 quarterly instalment payments each year.

Receivables – these represent all amounts recognised as owing to the department at the end of the reporting period but payment has not been received.

Receivable days – the average number of days it takes to receive payment. The department calculates Receivable days as, ‘total receivables/total revenue x 365 days’.

Resource Accounts – the financial statements which report the cost of running the department and include payments of tax credits, Child Benefit and certain reliefs.

Statement of Cash Flows – a statement that reports the cash flows relating to revenue from taxes, duties, fines and penalties.

Statement of Financial Position – a statement that reports a snapshot of the assets and liabilities relating to revenue from taxes, duties, fines and penalties as at the end of the reporting period.

Statement of Parliamentary Supply (SoPS) – this is the primary Parliamentary accountability statement and is unique to central government financial reporting. It reports the total outturn (how much has been spent) for the departmental group compared with the amounts approved by Parliament in the Estimate, in the various categories of expenditure.

Statement of Revenue, Other Income and Expenditure – this statement, the equivalent of a ‘Profit and Loss’ Account, reports a summary of the department’s income and expenditure relating to revenue from taxes, duties, fines and penalties.

Supply Estimates process – this is the means by which a government department seeks funds from Parliament and authority is given for departmental expenditure each year.

Suspended debt – an indirect tax, penalty or surcharge that is under challenge, dispute or appeal. The value is currently excluded from the receivables and debt balance.

Taxation period – this is the financial year ended 31 March and represents the period over which taxable events occur that generate net tax revenues recognised in the Statement of Revenue, Other Income and Expenditure.

Tax debt – the amount of tax that is overdue for payment and legally enforceable to be collected. Tax debt is included within the Trust Statement receivables balance. ‘Receivables’ is defined earlier in this glossary.

Three Instalment Payments (TIPs) – Corporation Tax for North Sea companies paid by 3 instalment payments each year.

Trust Statement – the financial statement which reports the revenues, expenditure, assets and liabilities related to taxes and duties collected by the department.

UK GAAP – the generally accepted accounting principles in the UK which are the body of accounting standards and guidance published by the Financial Reporting Council.

Voted expenditure – monies voted to the department by Parliament to cover our expenditure, following the submission of our Estimates. Parliament votes annually on each government department’s future expenditure.

Annex 1: Arm’s-length bodies

[Information on arm’s length bodies is shown on pages 109 to 110 within the Principal Accounting Officers report.] The following bodies are those within our accounting boundary for 2023 to 2024 that contribute to the departmental group.

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

				Permanently employed staff	Permanently employed staff	Other staff (note 1)	Other staff (note 1)
	Total operating income £’000	Total operating expenditure £’000	Net expenditure for the year (including financing) £’000	Number of employees	Staff costs £’000	Number of employees	Staff costs £’000
HMRC	(309,181)	39,979,801	39,670,620	61,723	3,331,266	451	18,080
VOA	(56,165)	278,748	222,583	3,426	184,140	253	10,086

Note 1: ‘Other staff’ includes Fixed Term Appointments and Temporary Fixed Term Appointments.

Annex 2: Statistical Tables

This table provides further detail by category on HMRC spending.

Table 1: Total departmental spending (£000)

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	2018-19 Outturn	2019-20 Outturn	2020-21 Outturn	2021-22 Outturn	2022-23 Outturn	2023-24 Outturn	2024-25 Plans
Resource DEL (note 1)
HMRC Administration	3,483,718	3,813,617	4,335,323	4,570,843	5,199,284	5,271,201	5,093,753
VOA Administration	142,738	164,797	141,100	143,995	132,548	183,309	212,167
Utilised Provisions	42,918	54,597	96,219	31,502	19,614	10,004	20,000
National Insurance Fund	282,548	254,332	222,649	251,344	259,413	277,222	233,000
Cost of Living	-	-	-	-	717,872	760,000	-
COVID-19	-	-	-	719,062	-110	-	-
Total Resource DEL	3,951,922	4,287,343	4,795,291	5,716,746	6,328,621	6,501,736	5,558,920
Of which:
Staff costs	2,360,289	2,602,310	2,778,298	2,862,995	3,265,139	3,477,773	3,359,496
Purchase of goods and services	1,199,928	1,207,607	1,494,300	1,842,658	1,903,404	1,907,881	1,622,885
Income from sales of goods and services	-201,710	-204,751	-288,573	-269,435	-268,378	-370,010	-369,102
Current grants to persons and non-profit bodies (net)	1,714	6,277	52,638	743,791	720,321	757,241	1,944
Current grants abroad (net)	1,418	1,287	840	1,025	1,043	1,672	-
Subsidies to private sector companies	387	-	-	-	-	-	-
Rentals	208,542	296,210	326,652	277,172	159,943	112,242	119,746
Depreciation (note 2)	288,680	296,137	310,833	174,352	478,237	535,681	846,520
Change in pension scheme liabilities	1,324	-210	-210	-	-	-	-
Other resource	91,350	82,476	120,513	84,188	68,912	82,366	-22,569
Total	3,951,922	4,287,343	4,795,291	5,716,746	6,328,621	6,501,736	5,558,920

Notes:

1. Outturn values are consistent with those reported in SoPS 1.1.
2. Includes impairments.

Note: The totals may differ to the information in the Statement of Parliamentary Supply due to rounding.

	2018-19 Outturn	2019-20 Outturn	2020-21 Outturn	2021-22 Outturn	2022-23 Outturn	2023-24 Outturn	2024-25 Plans
Resource AME (note 1)
Child Benefit	11,475,319	11,487,105	11,541,713	11,420,034	11,595,575	12,510,146	13,992,041
Tax Free Childcare	115,730	245,524	253,047	428,406	494,401	635,340	558,412
Providing payments in lieu of tax relief to certain bodies	97,388	116,035	140,071	130,003	7,973	173,626	161,080
Lifetime ISA	251,019	225,808	346,120	418,943	436,809	499,125	523,431
Help to Save	-	-	-	20,361	53,202	51,654	63,814
HMRC Administration	93,672	82,016	52,212	8,072	33,808	-3,987	20,000
VOA – Payments of rates to LAs on behalf of certain bodies	66,785	83,886	75,646	78,061	64,199	83,738	95,500
VOA Administration	7,094	1,523	1,184	1,010	1,082	853	2,000
Utilised Provisions	-42,920	-54,607	-96,223	-31,510	-19,615	-14,730	-20,000
Personal Tax Credit	22,288,296	18,331,274	15,063,222	10,605,481	8,834,945	7,307,214	1,874,960
Other Reliefs and Allowances	5,879,196	10,103,140	10,698,573	11,696,601	12,560,346	12,053,282	10,993,028
COVID-19	-	-	81,233,264	16,543,682	-132,476	-21,800	210
Total Resource AME	40,231,579	40,621,704	119,308,829	51,319,144	33,930,249	33,274,461	28,264,476
Of which:
Purchase of goods and services	71,679	89,110	95,721	83,492	68,188	89,053	100,704
Income from sales of goods and services	-4,894	-5,224	-4,535	-4,412	-3,918	-5,200	-5,200
Current grants to persons and non-profit bodies (net)	34,231,898	30,418,746	26,770,567	39,076,439	21,426,819	21,311,587	17,173,940
Subsidies to private sector companies	5,876,916	10,100,691	88,673,903	12,186,849	12,423,956	11,897,211	10,993,028
Depreciation (note 2)	477	1,290	1,785	9,514	12,752	12,208	-
Take up of provisions	100,289	82,249	50,315	-2,222	22,067	-15,327	2,004
Release of provision	-42,920	-54,607	-102,416	-31,299	-19,615	-15,071	-
Change in pension scheme liabilities	-	-	-	-	-	-	-
Other resource	-1,866	-10,551	3,823,489	783	-	-	-
Total	40,231,579	40,621,704	119,308,829	51,319,144	33,930,249	33,274,461	28,264,476
Resource budget (note 1)
Total Resource DEL	3,951,922	4,287,343	4,795,291	5,716,746	6,328,621	6,501,736	5,558,920
Total Resource AME	40,231,579	40,621,704	119,308,829	51,319,144	33,930,249	33,274,461	28,264,476
Total Resource Budget	44,183,501	44,909,047	124,104,120	57,035,890	40,258,870	39,776,197	33,823,396
Of which:
Depreciation (note 2)	289,157	297,427	312,618	183,866	490,989	545,134	846,520

Notes:

1. Outturn values are consistent with those reported in SoPS 1.1 [on page 144].
2. Includes impairments.

Note: The totals may differ to the information in the Statement of Parliamentary Supply due to rounding.

	2018-19 Outturn	2019-20 Outturn	2020-21 Outturn	2021-22 Outturn	2022-23 Outturn	2023-24 Outturn	2024-25 Plans
Capital DEL (note 1)
HMRC Administration	353,476	328,666	529,830	643,880	524,552	695,753	466,866
VOA Administration	8,742	6,362	6,746	20,650	31,848	29,364	40,640
Total Capital DEL	362,218	335,028	536,576	664,530	556,400	725,117	507,506
Of which:
Purchase of assets	387,376	420,306	677,700	982,938	644,473	805,498	524,157
Income from sales of assets	-25,158	-85,278	-141,124	-318,408	-88,073	-80,381	-16,651
	362,218	335,028	536,576	664,530	556,400	725,117	507,506
Capital AME (note 1)
Child Benefit	2	10	4	7	1	2	10
HMRC Administration (note 2)	-	-	-	-	-	-	250
Total Capital AME	2	10	4	7	1	2	260
Of which:
Capital grants to persons and non-profit bodies (net)	2	10	4	7	1	2	10
Depreciation	-	-	-	-	-		250
	2	10	4	7	1	2	260
Capital budget (note 1)
Total Capital DEL	362,218	335,028	536,576	664,530	556,400	725,117	507,506
Total Capital AME	2	10	4	7	1	2	260
Total Capital Budget	362,220	335,038	536,580	664,537	556,401	725,119	507,766

Notes:

1. Outturn values are consistent with those reported in SoPS 1.2.
2. HMRC Administration included Capital AME due to the introduction of IFRS16.

This table shows HMRC administration expenditure, utilised provisions and the administration element of the National Insurance Fund. This table does not include programme expenditure.

Table 2: Administration budget (£000)

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	2018-19 Outturn	2019-20 Outturn	2020-21 Outturn	2021-22 Outturn	2022-23 Outturn	2023-24 Outturn	2024-25 Plans
Resource DEL
HMRC administration	773,467	767,280	896,424	828,681	948,413	918,850	1,020,650
Utilised provisions	7,057	2,208	-	-	-	-	10,000
National Insurance Fund	59,264	51,552	50,536	56,030	54,712	63,962	53,966
Total administration budget	839,788	821,040	946,960	884,711	1,003,125	982,812	1,084,616
Of which:
Staff costs	335,364	401,196	467,299	437,580	474,413	560,426	553,741
Purchase of goods and services	341,999	245,209	338,798	374,643	450,180	425,260	427,822
Income from sales of goods and services	-35,670	-34,256	-94,044	-94,887	-59,763	-89,116	-89,508
Current grants to persons and non-profit bodies (net)	1,671	1,660	1,661	1,642	1,659	1,936	936
Rentals	94,795	132,956	149,860	110,563	39,512	24,279	32,438
Depreciation (note 1)	76,452	63,784	52,274	30,933	86,522	50,496	146,542
Other resource	25,177	10,491	31,112	24,237	10,602	9,531	12,645
Total	839,788	821,040	946,960	884,711	1,003,125	982,812	1,084,616

Note 1: Includes impairments.

Note: The totals may differ to the information in the Statement of Parliamentary Supply due to rounding.

Annex 3: Sustainability data tables

Greening Government Commitments (GGC)

	2017-18 (note 1)	2021-22	2022-23	2023-24
Greenhouse gas emissions (tonnes CO2e, 000s)	88.4	38.5	37.0	30.6
Direct building emissions (tonnes CO2e, 000s)	25.4	18.7	17.4	11.7
Domestic flight emissions (tonnes CO2e, 000s)	2.2	0.2	0.7	0.9
Paper purchased (A4 reams equivalent, 000s)	295.3	22.8	35.7	30.2
Water consumption (m3 000s)	566.1	239.1	211.3	207.2
Waste generated (tonnes, 000s excl. ICT)	9.5	4.9	4.0	3.1
Waste to landfill (% excluding ICT)	1.9	0.2	0.04	-
Waste recycled (% excluding ICT)	81	76	67	68
ICT waste recycled (tonnes)	70.6	122.0	121.0	47.5
ICT waste reused (tonnes)	213.8	230.7	271.3	75.3

Note 1: This is in the baseline year for our GGC commitments.

Greenhouse gas emissions

	2021-22	2022-23	2023-24
Non-financial indicators (tCO2e, 000s)
Total gross emissions	38.87	38.54	32.87
Total net emissions	24.65	25.99	20.47
Gross emissions Scope 1 and 2	37.03	32.85	26.73
Gross emissions Scope 3 (business travel)	1.84	5.69	6.14
Energy consumption (kWh, 000s)
Electricity: non-renewable	3,762	2,872	2,164
Electricity: renewable	61,537	59,491	55,135
Gas	89,768	88,635	62,559
Oil	8,709	4,828	8.20
Whitehall District Heating	3,373	not applicable	not applicable
Enviroenergy District Heating	4,207	not applicable	not applicable
Stratford District Heating	5,289	6,289	6,638
Sheffield District Heating	not applicable	not applicable	not applicable
Travel breakdown (tCO2e, 000s)
Road	1.89	2.75	2.43
Rail	0.37	1.86	1.54
Air (domestic and overseas)	0.62	2.23	3.15
(% of fleet)
Ultra Low Emission Vehicles	10	13 (note 1)	29
Financial indicators (£000)
Expenditure on energy	24,540	24,556	23,375
Expenditure on accredited offset purchases	6,098	20,405	19,610
Expenditure on official business travel	– 6,098	– 20,405	– 19,610

Note 1: This figure increases to 29% when vehicles on order are included, meeting the interim Government Fleet Commitment target.

Waste (note 1)

	2021-22	2022-23	2023-24
Non-financial indicators Tonnes 000s
Total waste (excluding ICT)	4.80	4.03	3.11
Waste: Landfill	0.01	0.002	–
Waste: Recycled/composted	3.64	2.70	2.13
Waste: Incinerated/energy from waste	1.15	1.33	0.99
Waste: ICT waste	0.35	0.39	0.12
Financial indicators (£000s)
Total waste (excluding ICT)	270	226	174
Waste: Landfill	1	0.28	–
Waste: Recycled/composted	204	151	119
Waste: Incinerated/energy from waste (note 1)	65	75	55
Waste: ICT waste	1,144	1,253	661

Note 1: In 2021 to 2022 a small amount of waste (0.22%) was incinerated without energy recovery.

Food waste

		2022-23 (Tonnes)	2023-24 (Tonnes)
Reuse	Redistribution for human consumption	-	-
	Animal feed	-	-
	Bio-based materials/Biochemical processing	-	-
	Other reuse	-	-
Waste	Anaerobic Digestion/Codigestion	28.18	39.40
	Composting/Aerobic processes	-	-
	Incineration/Controlled combustion	-	-
	Land application	-	-
	Landfill	-	-
	Sewer/Wastewater treatment	-	-
	Refuse/Discards/Litter (including dumping and unmanaged disposal)	-	-
	Other	-	-
	Total food waste	28.18	39.40

Note: Figures may not sum due to rounding.

Finite resource consumption – water

	2021-22	2022-23	2023-24
Financial indicators (£000s)
Water consumption – Supplied	1,305	1,270	1,278

Copier paper purchased

	2021-22	2022-23	2023-24
Financial indicators (£000s)
Copier paper purchased	69	154	137

Air travel breakdown (note 1)

Due to the amount of data presented, only part of the table below is visible. Please use the scrollbar at the bottom of the table to view all the columns.

	2021-22	2021-22	2021-22	2022-23	2022-23	2022-23	2023-24	2023-24	2023-24
Non-financial indicators	Number	Kms	mtCO2e	Number	Kms	mtCO2e	Number	KMS	mtCO2e
Total domestic	3,335	1,488,241	193.51	13,359	5,505,928	715.94	13,096	5,310,480	854.93
Total international	636	2,428,117	418.58	2,400	6,488,016	1,510.17	2,512	6,984,379	2,291.85
Short haul economy	329	585,225	88.38	1,127	1,107,488	167.25	1,158	1,243,080	227.32
Short haul business	4	11,108	2.52	27	34,147	7.73	27	36,635	10.05
Long haul economy	146	1,244,143	183.97	632	2,978,393	440.42	563	2,629,894	527.55
Long haul premium economy	14	136,810	32.37	54	310,958	73.57	61	330,856	105.93
Long haul business	14	111,233	47.70	332	1,649,887	707.50	442	2,259,994	1,311.45
Long haul first	-	-	-	18	78,385	46.36	4	23,644	18.93
International non‑UK	129	339,598	63.64	210	328,758	67.34	257	460,276	90.63

Online meetings

	2021-22	2022-23	2023-24
Total number of on-line meetings initiated	6,799,672	11,788,133	13,931,789

Note 1: Figures may not sum due to rounding.

Annex 4: Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (Northern Ireland 1997): reports to the Health and Safety Executive

RIDDOR incidents	2023-24	2022-23
Specified injuries to workers	8	8
Occupational diseases	3	1
Fatal injuries	0	0
Dangerous occurrences	0	2
Over 3-day incapacitation of worker (Northern Ireland)	0	1
Non-fatal accidents to non-workers	0	0
Over 7-day incapacitation of worker	20	11
Total	31	23

Non-RIDDOR incidents	2023-24	2022-23
Stress	819	613
Musculoskeletal	76	65
Slips/trips/falls	112	103
Violence and verbal abuse	277	222
Environmental	50	44
Road traffic accident	74	82
Bite (animal/insect)	7	8
Burns	17	33
Collision with a moving/fixed object	99	74
Cut	13	13
Manual handling	9	11
Exposure to hazardous substances	10	6
Asbestos, lead, ionising radiation	3	0
Noise	2	8
Electrical	10	17
Other	16	23
Total	1594	1322