§ 7. Mr. Paul Truswell (Pudsey)What plans he has to improve the accuracy of tax demands sent to self-employed people. [72419]
§ The Financial Secretary to the Treasury (Mrs. Barbara Roche)To help self-employed people to manage their tax affairs within the new self-assessment system, the Inland Revenue sends taxpayers statements of account which detail the current tax position. The Inland Revenue is constantly looking at ways of improving its service to taxpayers, and has recently improved the format of self-assessment statements.
§ Mr. TruswellI thank my hon. Friend for that answer. Is she aware that, as well as overtaxing the incomes of 800,000 self-employed people, the Inland Revenue has added insult to injury by enclosing with its letter of apology a guide that would have overtaxed the intellect of the average genius, let alone Members of Parliament? Has she any plans to introduce a numeracy and literacy strategy, so that, next year, we can have plain English, plain dealing and plain sailing?
§ Mrs. RocheI am well aware of the problems identified by my hon. Friend, and I take to heart his comment about plain English. I shall certainly undertake to ensure that his remarks are passed on.
Of course the Inland Revenue regrets the problems caused by the statement error. It decided to send all the statements, despite the fault in some, because taxpayers needed to know what to pay by 31 January. The fault was put right before statements were issued in February. Work is in hand to ensure that such faults do not slip through in future. I hope that my hon. Friend will accept those reassurances.
§ Miss Anne McIntosh (Vale of York)Will the Minister join me in calling on the Inland Revenue to impose the same penalties on itself for overcharging self-employed people in their tax assessment, and to repay 1205 interest on the amounts overpaid? Stiff penalties could be imposed on the Inland Revenue, so that the tax assessment might be more correct in the first instance.
§ Mrs. RocheIt is very unlikely that the situation that the hon. Lady describes will arise because of the late notification, which this was all about, but I am interested that the hon. Lady, for whom I have some regard—[HON. MEMBERS: "Some regard?"] There are limits beyond which even I will not go. I am grateful to her for raising the question of interest on late payment. Perhaps she might consider her party paying interest on broken promises.
§ Mr. Bill O'Brien (Normanton)May I join my hon. Friend the Member for Pudsey (Mr. Truswell) in asking the Minister to prevail on the Inland Revenue to be more efficient and to show greater efficiency in its dealings with the self-taxation system? Because of the Inland Revenue's lack of efficiency, returns are being sent to constituents and demands are being made for interest payments on unpaid tax when the tax has been paid. However, because of lack of efficiency, the Inland Revenue is not prepared to accept its mistakes. I understand that many constituents are paying interest by default. I ask the Minister to take the matter up and to demand greater efficiency in the Inland Revenue.
§ Mrs. RocheI say openly that, if my hon. Friend has some examples and cases to put to me, I will look into them as quickly as possible. If mistakes are made, we will always be happy to take responsibility and to look into them, but the Inland Revenue is constantly looking at its service, through consultation, and improvements are made all the time.