HC Deb 12 November 1991 vol 198 cc505-6W
Mr. Madden

To ask the Chancellor of the Exchequer what is the average penalty imposed in Yorkshire on those who submit value added tax returns late by(a) one week, (b) two weeks, (c) three weeks and (d) four weeks.

Mrs. Gillian Shephard

Customs do not maintain statistics for individual counties or regions. The penalties imposed for late submission or payment of VAT returns do not vary with the length of the period between due date and receipt by Customs. Nationwide, the average penalty imposed on defaulting traders (including those who may have received more than one penalty) over the current and preceding financial year is:

Average penalty £
Financial year ending 31 March 1989 266.24
Financial year ending 31 March 1990 375.42
Financial year ending 31 March 1991 429.39
1 April 1991 to 30 September 1991 441.41

Mr. Madden

To ask the Chancellor of the Exchequer how many appeals against penalties imposed for incorrect and late payment of value added tax have been upheld in the current year, to date, by value added tax tribunals in Yorkshire.

Mrs. Gillian Shephard

Customs do not maintain statistics for individual counties or regions. Nationwide in the current calendar year to 31 October a total of 50 appeals were upheld or partly upheld against penalties for incorrect declaration of value added tax. For the same period, the total number of appeals upheld or partly upheld against penalties for late payment of value added tax is 94.

Mr. Madden

To ask the Chancellor of the Exchequer how many representations he has received calling for the time required to elapse form date of supply for bad debt to obtain value added tax relief to be reduced from 24 months to 12 months; and if he will make a statement.

Mrs. Gillian Shephard

Between March 1990 and March 1991 about 150 representations were received seeking a reduction in the two-year waiting period for bad debt relief,which was part of the comprehensive scheme for bad debt relief enacted in the Finance Act 1990. In response, my right hon. Friend announced in his Budget statement that the waiting period would be halved to one year.

Mr. Madden

To ask the Chancellor of the Exchequer if he will empower value added tax tribunals to take mitigating circumstances into account when determining penalties on incorrect and late value added tax returns.

Mrs. Gillian Shephard

Consideration of this matter is currently forming part of the thorough review of value added tax penalties announced by my right hon. Friend the Chancellor of the Exchequer in his Budget statement. As my right hon. Friend said, the aim is to bring forward proposals for any changes required to the penalty regime in the 1992 Finance Bill.

Mr. Madden

To ask the Chancellor of the Exchequer what is the value added tax threshold in the United Kingdom and in each of the other EC countries.

Mrs. Gillian Shephard

The VAT registration threshold in the United Kingdom is £35,000 annual turnover.

Belgium, Spain and Italy have no minimum VAT registration threshold.

For other member states of the EC the thresholds are as follows:

Threshold based on annual turnover

  • Denmark
  • DKr 10,000 (£888.49)
  • France
  • FF 70,000 (£7061.79)
  • Germany
  • DM 20,000 (£6872.85)
  • Greece
  • DR 1,000,000 (£3113.32) (Supply of goods)
  • DR 250,000 (778.33) (Supply of services)
  • Ireland
  • IR £32,000 (£29384.75) (Supply of goods)
  • IR £15,000 (£13774.10) (Supply of services)
  • Luxembourg
  • LFrs 200,000 (£3330.55)
  • Portugal
  • Esc 800,000 (£3205.12) (Industry)
  • Esc 500,000 (£2003.20) (Professions)

Threshold based on annual VAT payable after input tax deduction

  • Netherlands
  • DF1 2174 (£3717.19)

Sources: VAT Monitor

Tax News Service

Rates of exchange: as at 31 October 1991.