HC Deb 14 May 1984 vol 60 c11W
Mr. Pawsey

asked the Chancellor of the Exchequer why the Inland Revenue does not pay interest on advances or overpayments made by taxpayers.

Mr. Moore

A taxpayer who wishes to make an advance payment of tax may, in certain circumstances, purchase a certificate of tax deposit. This enables a sum to be lodged for use against future tax liability and attracts interest. The full conditions for the purchase of certificates and the taxes against which they may be set are given in a prospectus and accompanying schedule issued by the Treasury and obtainable from any Inland Revenue tax collection office.

The Inland Revenue compensates, in certain circumstances, taxpayers whose repayments have been subject to delay. The amount paid is known as repayment supplement and was introduced under the provisions of sections 47 and 48 of the Finance (No. 2) Act 1975.

Mr. Pawsey

asked the Chancellor of the Exchequer what is the average length of time taken by the Inland Revenue office at Cumbernauld to repay an overpayment; and how that compares with other similar offices in the United Kingdom.

Mr. Moore

The Inland Revenue accounts office at Cumbernauld makes three kinds of repayment:

  1. (a) Reimbursement of employers with insufficient tax to make a repayment due to an employees on the next pay day.
  2. (b) PAYE tax overpaid by employers.
  3. (c) Tax overpaid on an assessment.

The average times for repayment to be made at Cumbernauld are:

  1. (a) 1½ weeks.
  2. (b) 6 weeks.
  3. (c) 6 weeks.

There is only one other accounts office like Cumbernauld, and the average times in that office are:

  1. (a) 1½ weeks.
  2. (b) 3 weeks.
  3. (c) 6 weeks.

Mr. Pawsey

asked the Chancellor of the Exchequer if he will instruct tax offices and particularly that at Cumbernauld to speed up the repayment of overpayments.

Mr. Moore

Tax offices have standing instructions to give priority to tax repayments. I am aware that there have been some problems at Cumbernauld, which is one of the centralised accounts offices handling the receipt of tax payments generally, and work is in hand to improve the situation.

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