Value Added Tax (Hansard, 18 January 1982)

§ Mr. Chapman
asked the Chancellor of the Exchequer what was the yield from value added tax in 1980–81; what is the estimated yield in 1981–82; and what is his estimate of the additional amount of revenue which would have been raised in the current financial year if the value added tax rate had been 16 per cent., 17 per cent., 18 per cent., 19 per cent. and 20 per cent. respectively.

§ Mr. Bruce-Gardyne
Net receipts of VAT in 1980-81 were £10, 966.6 million. The Budget estimate for 1981–82, published in the Financial Statement and Budget Report 1981–82, is £12, 650 million. It is estimated that the net additional yield to the Exchequer from increasing the 83W standard rate of VAT to 16 per cent., 17 per cent., 18 per cent., 19 per cent. and 20 per cent. would be about £600 million, £1, 200 million, £1, 800 million, £2, 400 million and £2, 900 million respectively. The estimates are rounded to avoid spurious precision; this partly conceals that successive increases yield progressively less.

§ Mr. Michael Brown
asked the Chancellor of the Exchequer if he will publish a table showing (a) the level of penalty imposed by the courts for failure to make a value added tax return on time or late payment of value added tax in all cases since 28 February when courts imposed penalties which were higher than could have been imposed prior to the Finance Act 1980, (b) the maximum fine that could have been imposed on each occasion and (c) (a) as a percentage of (b).

§ Mr. Bruce-Gardyne
Due to the industrial action in the Civil Service, the period since 28 February 1981 is not representative of the normal processing of cases of failure to render returns or to pay tax. Available records show the following 24 cases between 1 March and 30 November 1981 when courts imposed penalties which were higher than could have been imposed prior to the 1980 Finance Act:

Penalty imposed Maximum penalty Percentage of maximum penalty

£ £

3,688 3,688 100

2,156 2,156 100

887 887 100

1,852 1,902 97.4

1,500 2,021 74.2

1,075 1,810 59.4

541.50p 983 55.1

1,300 2,475 52.5

1,000 1,982 50.5

1,250 2,735 45.7

1,000 2,223.89p 45.0

1,000 2,440 41.0

2,000 5,055 39.6

1,000 2,676 37.4

5,050 16,194 31.2

1,000 3,447.83p 29.0

1,070 3,859 27.7

1,200 4,503 26.6

600 2,568 23.4

1,000 6,189 16.2

1,500 10,140 14.8

4,000 42,917 9.3

800 8,917 9.0

1,000 11,216 8.9

Penalty imposed	Maximum penalty	Percentage of maximum penalty
£	£
3,688	3,688	100
2,156	2,156	100
887	887	100
1,852	1,902	97.4
1,500	2,021	74.2
1,075	1,810	59.4
541.50p	983	55.1
1,300	2,475	52.5
1,000	1,982	50.5
1,250	2,735	45.7
1,000	2,223.89p	45.0
1,000	2,440	41.0
2,000	5,055	39.6
1,000	2,676	37.4
5,050	16,194	31.2
1,000	3,447.83p	29.0
1,070	3,859	27.7
1,200	4,503	26.6
600	2,568	23.4
1,000	6,189	16.2
1,500	10,140	14.8
4,000	42,917	9.3
800	8,917	9.0
1,000	11,216	8.9