Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted
HMRC significantly reduced Child Trust Fund monitoring and compliance activity since 2013.
Conclusion
HMRC receives annual returns from providers with information about Child Trust Funds, including the number of accounts held and the number that have not been accessed by their owners. It told us that in the period when new accounts were being opened it received fortnightly returns from providers, but it cut back its monitoring and compliance activity on the scheme in 2013.31
Government Response Summary
The government agrees and aims to implement by Summer 2024, committing HMRC to explore publishing more timely Child Trust Fund information, remind providers of return requirements, and improve analytical processes. HMRC has already published updated statistics and addressed issues with missing returns.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target Implementation date: Summer 2024 5.2 HMRC is exploring opportunities for publishing more timely information on CTFs. HMRC has reminded providers of the requirement to make returns within 60 days of the end of the tax year. HMRC is also improving its analytical processes to reduce lead times. HMRC anticipates that future statistical information up to tax year 2023 to 2024 will be published by tax year in the Summer of 2024. 5.3 Since the Committee hearing, HMRC has published more recent information on CTFs up to April 2022 in June 2023, including new tables showing the cumulative number of matured accounts. Prior to the publication, HMRC was aware that some Child Trust Fund providers had not completed the requisite annual return. HMRC identified and reminded providers of the outstanding returns and these are included in the latest published statistics. The issue of missing returns was addressed in paragraph 3.3 of the Annual savings statistics: background quality report on Gov.UK.