At the moment 870,000 families with more than two children claim tax credits, according to HMRC.

Tax revenue from other sources was up: receipts of both personal income tax and small companies' income tax rose, according to HMRC data.

Overall, the volume of tax credits awarded jumped 120 percent between 2001-02 and 2010-11, according to HMRC data.

According to HMRC's website, businesses must register for VAT if turnover for the previous 12 months is above £67,000.

Between June and July they edged up to 104,760, the highest level since March 2016, according to HMRC figures.