§ Mr. StevensonTo ask the Chancellor of the Exchequer for what reason motor accident repair shops wholly owned by insurance companies are exempt from charging VAT on the labour element of the service. [52242]
§ Mr. BoatengSuch motor repair shops are not exempted from VAT. However, it is a fundamental principle of VAT that the use by a business of its own staff is outside the scope of VAT.
§ Mr. BercowTo ask the Chancellor of the Exchequer how much money was raised in(a) 2000–01 and (b) 2001–02 by automatic fines imposed by Customs and Excise on firms responsible for late payment. [52373]
§ Mr. BoatengThe VAT default surcharge system is the only fully automated system within Customs and Excise for applying fines for late payments. During 2000–01, penalties totalling £87 million were paid by businesses who were late paying tax declared on VAT returns. The total for 2001–02 is £75 million (subject to year end accounting adjustments).
§ Mr. BercowTo ask the Chancellor of the Exchequer how many businesses he expects to benefit from the removal for companies with a turnover of under £100,000 of the requirement that a business has to be VAT-registered for 12 months before using the annual accounting scheme. [52375]
§ Mr. BoatengAs a result of the measures announced in the Budget, approximately 140,000 traders in 2002–03 will have the opportunity to use the annual accounting scheme earlier than would have otherwise been the case.
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§ Mr. OatenTo ask the Chancellor of the Exchequer if he will allow sixth form colleges the same VAT exemptions as secondary schools which have sixth forms. [52345]
§ Mr. BoatengVAT is not charged on education taught in sixth form colleges or in sixth forms within secondary schools. The funding of sixth form colleges takes into account the VAT they pay on their purchases.