HC Deb 18 December 1972 vol 848 cc293-5W
Mr. Joel Barnett

asked the Chancellor of the Exchequer what further action he proposes to take in view of the fact that at 4th December some 500,000 or two-thirds of those who should have registered for value added tax had failed to do so.

Mr. Higgins

The rate of applications has increased steadily week by week and no special action beyond that already being taken appears necessary at present. Press advertisements and other forms of publicity will continue to be used to bring the need to register to the attention of those concerned.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is the cost to date of publicity related to registration for value added tax.

Mr. Higgins

£360,000, in round figures.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what action he proposes to take to ensure collection of value added tax from those traders who have not registered by 31st March 1973.

Mr. Higgins

There are penalties for failing to notify liability to registration. From 1st April 1973 a taxable person, whether registered or not, will be liable to pay VAT on any taxable supplies he makes in the course of his business and, if unregistered, he will not be entitled to claim credit for input tax on his purchases.

Customs and Excise will be responsible for identifying taxable persons who have failed to notify and will take such action to ensure collection of VAT from them as may be necessary and appropriate.

Mr. Joel Barnett

asked the Chancellor of the Exchequer if those who register for value added tax after 31st March 1973 will still be able to make claims under the purchase tax rebate scheme for goods held in stock for resale at 31st March 1973; and if he will clarify his advertisements in this respect.

Mr. Higgins

Only persons registered for value added tax with effect from 1st April 1973 will be elegible to claim rebate. I will bear in mind the hon. Member's suggestion for future advertising.

Mr. Joel Barnett

asked the Chancellor of the Exchequer how many further Customs and Excise booklets on value added tax remain to be issued; and when he expects they will all be issued.

Mr. Higgins

Two notices have yet to be issued; they are Nos. 711 and 712 dealing, respectively, with second-hand cars and with works of art and antiques. The relevant orders are expected to be laid this week and the public notice will be distributed as soon as possible.

Mr. Joel Barnett

asked the Chancellor of the Exchequer, in view of the fact that the deputy chairman of the Board of Customs and Excise has informed Little-woods Pools that value added tax will not apply to football pools agents with over £5,000 a year income, if he will take steps to ensure that those local offices that have given contrary advice make an appropriate correction.

Mr. Higgins

The Customs and Excise has recently issued instructions to its VAT offices that the activities of pools collectors and agents and bookmakers' agents are exempt from VAT under Schedule 5 to the Finance Act 1972. Steps have been taken to ensure that anyone who may have been given incorrect advice previously will be informed of the correct position.