HC Deb 15 March 1995 vol 256 cc608-9W
Mr. Berry

To ask the Chancellor of the Exchequer what are his estimates for(a) the numbers of individuals working in the construction industry on the basis of SC60 certificates and (b) the numbers of individuals operating with 714Is, in each year following the scrutineering exercise in 1990.

Sir George Young

The number of 7141 holders, recorded in April of each year—March for 1995—were as follows:

  • 1990: 513,145
  • 1991: 508.710
  • 1992: 485,668
  • 1993: 450,107
  • 1994: 424.185
  • 1995: 414,040

Numbers of individuals taxed on the basis of SC60 deduction are not compiled. But the Inland Revenue believes that, for each of the above years, the numbers have been lower than for 7141 holders.

Mr. Berry

To ask the Chancellor of the Exchequer what are the Inland Revenue estimates for change in(a) relative numbers of 7I4s, SC6Os and PAYE individuals in the constructions industry and (b) the respective tax yield of each category as a consequence of the measures related to thresholds for eligibility for 714 certificates introduced in the Finance Bill 1995.

Sir George Young

No firm estimates have been made. But the purpose of the Finance Bill measures is to reduce the number of 714 certificates in use, so that at least 80 per cent. of subcontractors—mostly those who supply only their own labour—are paid under SC60 deduction. An indirect consequence of the changes may he an increase in the number of individuals in the industry who are directly employed, and therefore taxed under PAYE, hut it is impossible to predict the extent of this movement. The overall tax yield from the industry is expected to increase significantly by limiting the scope for evasion and non-payment of tax.

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