§ 5. Mr. John Huntasked Mr. Chancellor of the Exchequer if he is satisfied with the wording of letters sent by Her Majesty's Customs and Excise to small traders whose VAT payments are alleged to be overdue.
§ Mr. Robert SheldonYes, Sir. These letters are formal demands for payment of VAT which are by regulation required to be made before distress may be levied to recover the tax.
§ Mr. HuntIs the hon. Gentleman aware that one of my constituents received a peremptory and aggressive letter from the Orpington VAT office demanding immediate payment of £128 and threatening to levy distress upon his goods and chattels, when the tax had been paid in full five months earlier? Is this not another example of the way in which small traders are being needlessly harried? Will he remind these VAT 655 officials that they are public servants and that they ought to watch their language and their facts?
§ Mr. SheldonNormally such a letter is sent after two and a half months beyond the time when the tax has become due, and usually when up to three reminders have been sent.
> I am aware of the case that the hon. Gentleman has brought to the attention of the house, when five months after the tax had been paid a letter was sent. This was, of course, an unfortunate error, and no one would seek to deny that for a moment. But I believe it to be an isolated occurrence, and the Commissioner of Customs and Excise has apologised to the hon. Member in the way clearly required.
§ Mr. LoydenIs my hon. Friend aware of the effects that VAT is having on certain areas of amateur sport? Will the Financial Secretary see what relief can be given for the work usefully done locally by those who organise this type of venture, particularly for young people?
§ Mr. SheldonI am aware of the problem that my hon. Friend has mentioned. There is a Question on the Order paper with which I hope to be dealing in due course.