§ Mr. Joel Barnettasked the Chancellor of the Exchequer what is his estimate of yield from VAT in the first year, as between goods and services.
§ Mr. HigginsNo separate first-year estimates have been made of the value added tax yield from goods and from services.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer what is his analysis, giving estimated figures, of the reasons for the shortfall of 400,000 between those actually registered for VAT and his original estimate.
§ Mr. HigginsThe shortfall below the original estimate is now approximately 360,000. The number of voluntary registrations is at present some 160,000 less than was originally expected, though some of these may apply later. The total number of registrations has been reduced by approximately 30,000 because single registrations have been given to groups of companies whose constituent members would otherwise have been registered separately. The original estimate had to be lowered on the limited data available and it now appears to have been higher than the true figure.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer if he will make a statement on the position of VAT on con- 346W tainers for which a deposit is charged, that is repayable on return of the container.
§ Mr. HigginsWhere the trade practice is that containers separately charged for are normally returned and credited in full, the supplier need not account for tax when a container is sent out, but must do so if it is not returned. Further information is given in paragraph 42 of Customs and Excise notice No. 700, the VAT General Guide.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer how many of the staff of Customs and Excise are engaged on VAT.
§ Mr. HigginsAbout 6,300.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer how many of the staff of the Customs and Excise working on VAT will in due course be engaged on checking accounts submitted to the Inland Revenue.
§ Mr. HigginsNone will be wholly or mainly so employed.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer whether it is intended to be the general, rather than the occasional, practice that quarterly VAT returns will be checked against accounts submitted to the Inland Revenue.
§ Mr. HigginsThis will not be done as a matter of routine.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer how many Customs and Excise staff will be engaged in making personal calls on firms to check VAT returns.
§ Mr. HigginsPersonal calls to check VAT returns will be included in the duties of between 3,500 and 4,000 Customs and Excise staff.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer (1) how many firms it is estimated will be subject to a visit by a Customs and Excise officer each year for matters relating to VAT;
(2) what it is now estimated will be the average time between visits to a firm by a Customs and Excise officer to check 347W records and for generally investigating accuracy of VAT returns, or for any other purpose connected with VAT.
§ Mr. HigginsThe frequency with which individual firms will be visited will vary considerably and it is not possible to estimate accurately how many will be visited in a year or what the average time between visits will be.
Mr. Joel Barnedasked the Chancellor of the Exchequer if he will provide an analysis of the number of firms registered for VAT as between manufacturing, wholesale, retail, services, and sundry other categories.
§ Mr. HigginsThe following figures relate to registrations by 9th April, the latest date for which statistical information is available.
£5,000 to £10,000 £10,000 to £25,000 £25,000 to £50,000 £50,000 to £100,000 £100,000 to £600,000 £600,000 to £1 million Over £1 million Manufacturing … 17,886 23,915 15,455 13,413 21,168 2,879 6,329 Wholesale … 6,046 9,482 6,620 6,506 11,970 1,406 2,296 Retail … 68,016 122,946 58,905 22,025 10,361 487 877 Services … 83,152 92,705 40,209 22,653 20,031 1,368 2,956 Other … 133,620 105,841 41,185 24,208 23,457 1,948 3,497
Mr. Joel Baraettasked the Chancellor of the Exchequer how the number of firms that actually registered for VAT compares with figures available to him from other sources.
§ Mr. HigginsNo directly comparable figures are available from other sources.