§ Mr. Meacherasked the Chancellor of the Exchequer if he will estimate the administrative cost of taxing child benefit (a) for all taxpayers and (b) for higher rate taxpayers; and in each case how many extra civil servants would be required.
§ Mr. Moore[pursuant to his reply, 25 October 1984, col. 679]: It is not possible to quantify the additional administrative cost and staffing requirement of taxing child benefit without knowing the form which the proposed arrangements for collecting the tax would take. The administrative cost if the new charge were limited to higher rate taxpayers would be substantially smaller than if all taxpayers were made liable since only about 5 per cent. of the total of 7.1 million families receiving child benefit are liable to income tax at the higher rates.
§ Mr. Meacherasked the Chancellor of the Exchequer what proportion of those currently in receipt of child 823W benefit pay tax; and how many non-tax paying child benefit recipients would be brought under the tax threshold if child benefit were subject to tax.
§ Mr. Moore[pursuant to his reply, 25 October 1984, col. 679]: It is estimated that approximately 85 per cent. of the 7.1 million families currently receiving child benefit are liable to income tax. Some 200,000 families which are in receipt of child benefit but are currently not liable to income tax would become liable if the benefit were made taxable.