HC Deb 05 November 1975 vol 899 cc189-90W
Mr. Gwynfor Evans

asked the Chancellor of the Exchequer what is the current average income of self-employed persons in England, Scotland and Wales, respectively.

Mr. Robert Sheldon

I regret that the information is not available in the required form. However, the following information has been derived from the Inland Revenue's Survey of Personal Incomes for 1972–73, the latest year for which published information is available:

Average self-employment income: £
England 1,809
Wales 1,619
Scotland 2,133

The averages relate to taxpayers who receive some self-employment income and whose total net income for 1972–73 was over the effective exemption limit for that year (£595).

They do not take account of other income received by these taxpayers—that is, income from employment or from investments. Self-employment income is the income, including wife's income, chargeable to tax under Schedule D Cases I and II and is after deduction of capital allowances and losses. Total net income is defined at page 41 of Inland Revenue Statistics 1974. In calculating the averages, married couples are counted as one unit.

Mr. David Howell

asked the Chancellor of the Exchequer what representations he has received from the self-employed on the administration of VAT; what proposals for reform have been put to him; and whether he will now list these proposals, with his comments.

Mr. Robert Sheldon

I received in August a memorandum from the National Federation of Self Employed proposing

  1. 1. An allowance to remunerate small businesses for the work they do in collecting VAT from their customers.
  2. 2. An option for small businesses to submit annual instead of quarterly VAT returns, with provisional monthly payments based on the previous year's liability.
  3. 3. A further special scheme for small retailers, using a composite VAT rate.
  4. 4. Bad debt relief.

Customs and Excise, after a postponement at the Federation's request, met the Federation to discuss these proposals on 14th October. There was a useful exchange of views; the Federation undertook to work out the proposals in more detail, and another meeting will be arranged when that has been done.

The Federation has also asked me to receive a delegation to make certain representations affecting VAT legislation. I hope to do this shortly.

In the meantime, it would not be appropriate for me to comment further.