§ Mr. WebbTo ask the Chancellor of the Exchequer what he expects to be the effect in(a) 1997–98, (b) 1998–99 and (c) 1999–2000 on Inland Revenue manpower of the move to self-assessment; and if he will estimate the effect of the change on the running costs of the Inland Revenue. [24714]
§ Dawn Primarolo[holding answer 22 January 1998]: The move to self-assessment will reduce Inland Revenue manpower by nil in 1997–98, by 1,400 man years in 1998–99 and by a further 1,600 man years in 1999–2000. Once the transitional costs of introducing the system have disappeared, self-assessment is expected to reduce Inland Revenue running costs by around £70 million per annum.
§ Mr. WebbTo ask the Chancellor of the Exchequer what revenue he expects the Government to receive from £100 fines on taxpayers who file their return after the 31 January deadline. [24715]
§ Dawn Primarolo[holding answer 22 January 1998]: The Government have not included any specific amount for these penalties in their forecast receipts. These penalties exist solely to deter late filing, and the Government would much prefer that taxpayers file their returns on time than incur penalties for late filing. The normal penalty charge will be £100, but where the tax payable is less than this, the penalty will be reduced to an amount equal to the tax liability.