§ Mr. Nicholas Brown
To ask the Secretary of State for Social Security if he will estimate the effect on Treasury revenues in 1991–92 of extending liability to national insurance contributions on(a) company cars and (b) free fuel to employees earning over £8,500 a year.
§ Miss Widdecombe
The Government's proposal to extend employers' national insurance contribution liability to the benefit gained from cars and fuel provided by them will have no effect on Treasury revenues in 1991–92. It is estimated that these proposals will yield an extra £550 million in respect of cars, and £60 million in respect of fuel, for the 1991–92 year. However the payment to be made by employers in respect of the 1991–92 year will not be made until early in 1992–93. These amounts will be apportioned between the national insurance fund and the national health service. There will be no added liability on employees.
Tax paying employers will be able to claim corporation tax or income tax relief, which will reduce income to the Consolidated Fund by about £200 million in a full year.