HC Deb 21 April 1978 vol 948 cc382-4W
Mr. McCrindle

asked the Chancellor of the Exchequer how many applications to deregister from VAT, received from individuals or firms whose turnover was between £5,000 and £7,500, were refused in the financial year to 5th April 1978; and if he will give a summary of the reasons.

Mr. Robert Sheldon

It is not known how many applications for deregistration were refused in the financial year to April 1978. Deregistration can be refused only if an applicant fails to comply with the legal requirements.

Schedule 1 to the Finance Act 1972 allows deregistration

  1. (a) after the end of any quarter if the person has been registered for the whole of the two years then ending and if the value of his taxable supplies in each of those years has not exceeded the prescribed annual limit, or if the value of his taxable supplies in each of the quarters comprised in those years has not exceeded a prescribed quarterly limit; and
  2. (b) at any time if the person can satisfy the Commissioners that the value of his taxable supplies in the period of one year then beginning will not exceed the prescribed annual limit.

When value added tax was introduced, the relevant limits were £4,000 in the year and £1,250 in a quarter. The Finance Act 1977 increased the limits from 1st October 1977 to £6,000 and £1,875 respectively. The hon. Member will be aware that a resolution of the House on 11th April 1978 provides for a further increase from 1st July 1978 to £8,500 and £2,500.

Mr. McCrindle

asked the Chancellor of the Exchequer how many applications to deregister from VAT, received from individuals or firms whose turnover was between £5,000 and £7,500, have not yet been processed; and what is the principal cause of delay.

Mr. Robert Sheldon

It is not known how many applications for deregistration are at present being processed. There is normally little delay in dealing with applications which meet the prescribed taxable turnover conditions. If the hon. Member is aware of any case of delay and will write to me, I shall have the matter investigated.

Mr. Lawson

asked the Chancellor of the Exchequer what would be the yield to the Exchequer in a full year from unification of the rate of value added tax at 10 per cent.

Mr. Robert Sheldon

About £700 million.