Income Tax (Hansard, 9 June 1986)

§ Sir Brandon Rhys Williams
asked the Chancellor of the Exchequer what was the cost in 1985–86 of administering income tax; and what is the latest estimate of the dates of completion of the programme of computerisation, distinguishing between installation of hardware and preparation of software.

§ Mr. Norman Lamont
The cost of administering income tax in 1985–86 was £793.1 million.
The computerisation of PAYE (COP) and of schedule D work (CODA) is on schedule for completion in 1988. Five (out of eleven) regional processing centres are already operational. Software enhancements to the basic computer systems will continue throughout the implementation phase and beyond.

§ Sir Brandon Rhys Williams
asked the Chancellor of the Exchequer if he will update his answer to the hon. Member for Kensington, Official Report, 3 April 1985, column 679, showing revenues from higher rate income tax each year since 1978–79; and what is the current cost of collection of this revenue.

§ Mr. Norman Lamont
Updated estimates for 1983–84 to 1985–86 and an estimate for 1986–87 are as shown. The current cost of administering higher rate income tax is about £13 million.

Income tax due from higher rate hands in excess of basic rate liability^*

£ million

at current prices at 1978–79 prices†

1983–84 1,400 830

‡1984–85 1,600 900

‡1985–86 1,950 1,040

‡1986–87 2,400 1,240

^* Excluding yield from the investment income surcharge in 1983–84.

† Using the RPI.

‡Provisional.

Income tax due from higher rate hands in excess of basic rate liability^*
£ million
	at current prices	at 1978–79 prices†
1983–84	1,400	830
‡1984–85	1,600	900
‡1985–86	1,950	1,040
‡1986–87	2,400	1,240
^* Excluding yield from the investment income surcharge in 1983–84.
† Using the RPI.
‡Provisional.