HC Deb 05 December 1978 vol 959 cc632-3W
Mr. Percival

asked the Chancellor of the Exchequer what was the annual cost, to the latest convenient date, incurred by Customs and Excise officials in visiting taxpayers at their offices or homes in order to check their value added tax returns.

Mr. Robert Sheldon:

The estimated cost of salaries and employer's national insurance contributions in 1977–78 in respect of Customs and Excise staff employed on control visits and associated activities in local VAT offices was approximately £22½ million. I regret that it is not practicable to isolate the cost of the visits themselves from the asesociated office activities, such as correspondence or writing reports, or, in respect of non-salary costs, to isolate costs of visits from the cost of administering VAT as a whole.

Mr. Trotter

asked the Chancellor of the Exchequer what action he is taking following the comments of the value added tax tribunal in the case of Brays of Glastonbury Limited v. Customs and Excise regretting that value added tax notice no. 714 was misleading in stating that slippers suitable for both boys and girls are zero rated up to and including size 5½ if made on lasts of a certain size, having regard to the fact that the tribunal had to find in law that this conclusion was incorrect in the case in question.

Mr. Robert Sheldon:

Immediately after receiving the tribunal's written decision, Customs and Excise contacted interested trade associations seeking their assistance in bringing the decision to the attention of their members. The tribunal's criticism of notice no. 714— young children's clothing and footwear— which were the first of this type to be received, are being carefully considered as part of a current review of the notice. Any changes will be included in a revised edition to be issued after consultation with the trade associations.

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