§ Mr. Trotter
asked the Chancellor of the Exchequer how many traders have deregistered as a result of the increase in the value added tax threshold; whether this number is in line with his expectations how many traders with a turnover below the new limit remain registered and what is his estimate of the public revenue lost as a result of the deregistrations on an annual basis.
§ Mr. Robert Sheldon
8,773 registered persons are known to have deregistered from the beginning of October 1977 as a result of Section 15(3) of the Finance Act 1977; others have deregistered under this provision subsequently but their 325W number is not known. The results are below expectations. Some 50,000 persons with a turnover currently below £6,000 per annum remain registered, but of these approximately two-thirds normally claim repayments of VAT and are considered unlikely to seek to deregister. The cost of the deregistrations at an annual rate is estimated to be of the order of £1½ million.