§ Mr. Gryllsasked the Chancellor of the Exchequer if he will make a statement on the outcome of the consultations on annual accounting for small businesses announced by the Financial Secretary to the Treasury on 16 March 1983.
§ Mr. HayhoeCustoms and Excise have consulted 4,000 small businesses on the possibility of introducing annual rather than quarterly VAT returns for all those whose VAT payments were below a specified level each year. Of the 2,643 who replied, 42 per cent. were in favour and 58 per cent. against a scheme of annual accounting and payment. Customs also sought the views of 57 trade associations and professional bodies and received 31 replies, seven in favour and 24 against the proposed scheme. The Government are very grateful to all those who assisted in the consultative process by giving their views to Customs and Excise.
My right hon. Friend the Financial Secretary made it clear during the Budget debate on 16 March that a scheme of annual accounting for the smallest businesses could not be operated on an optional basis, and that the Government would be willing to consider it only if a clear majority of those concerned were in favour. The consultations have shown that a substantial majority prefer the present arrangements, and the Government have therefore decided not to pursue the annual accounting proposal further at present.