HC Deb 19 February 1998 vol 306 cc795-6W
Mr. Bermingham

To ask the Chancellor of the Exchequer if the proposed income tax changes for professionals referred to in an Inland Revenue press statement of 22 December 1997 will result in banisters being liable to pay income tax to the Government on fees due to the barrister by the Legal Aid Board before those sums have been received by the barrister from the Legal Aid Board. [30397]

Dawn Primarolo

The precise effects of the proposal to withdraw the cash basis practices available to professionals will depend on the individual circumstances and the final detail of the proposal. It has been the subject of a consultation process which ended on 14 February 1998. We are now reviewing the proposal in the light of the comments received. The final shape of the proposed legislation will not be announced in advance of my right hon. Friend's Budget.

Mr. Bermingham

To ask the Chancellor of the Exchequer what estimate he has made of the likely acceleration in the income tax and national insurance paid by persons affected by the proposed income tax changes for professionals referred to in an Inland Revenue press statement of 22 December 1997 and of the amount of additional income tax and national insurance which will be so accelerated. [30395]

Dawn Primarolo

The purpose of consultation was to enable those affected to voice their concerns. The consultation process ended on 14 February 1998. We are now reviewing the proposal in the light of the comments received. The final shape of the proposed legislation will not be announced in advance of my right hon. Friend's Budget.

Mr. Bermingham

To ask the Chancellor of the Exchequer when the Government plan to require one-off payments to be made in respect of the acceleration in the income tax and national insurance paid by persons affected by the proposed income tax changes for professionals referred to in an Inland Revenue press statement of 22 December 1997. [30396]

Dawn Primarolo

The proposal to withdraw the cash basis practices available to professionals has been the subject of a consultation process which ended on 14 February 1998. We are now reviewing the proposal in the light of the comments received. The final shape of the proposed legislation, including the phasing of its implementation, will not be announced in advance of my right hon. Friend's Budget.

Mr. Bermingham

To ask the Chancellor of the Exchequer what plans the Government have to introduce relief for professionals affected by the proposed changes parallel to the cash accounting scheme for VAT consequent upon proposed income tax changes for professionals referred to in an Inland Revenue press statement of 22 December 1997. [30398]

Dawn Primarolo

The proposal to withdraw the cash basis practices available to professionals is the subject of a consultation process which was started by the issue of an Inland Revenue Press Release on 22 December 1997. Comments were invited by 14 February 1998. Now we are in the process of reviewing the proposal in the light of the comments received. The outcome of that review will not be announced before my right hon. Friend's Budget.

Mr. Bermingham

To ask the Chancellor of the Exchequer what estimate he has made of the level of income tax which the Treasury will receive on a professional's profits over the course of a professional's career under the proposed income tax changes for professionals referred to in an Inland Revenue press statement of 22 December 1997 relative to the current procedures. [30401]

Dawn Primarolo

The proposal to withdraw the cash basis practices available to professionals does not affect the total amount of income chargeable to income tax, but changes the timing of when it has to be returned for income tax purposes. Estimates of the effect on Treasury receipts from year to year will depend on the final detail of the proposal. It has been the subject of a consultation process which ended on 14 February 1998. We are now reviewing the proposal in the light of the comments received. The final shape of the proposed legislation will not be announced in advance of my right hon. Friend's Budget.