§ Mr. Wakehamasked the Chancellor of the Exchequer if he is satisfied with the operation of the 714 sub-contractor's tax certificate with particular reference to the renewal of certificates which are expiring this spring; whether all new certificates will be issued for four years; and if he will make a statement.
§ Mr. Robert SheldonThe new sub-contractors scheme has been operating only since April 1977 and it is too early to pass final judgment on it. On the evidence available so far, however, I am satisfied that in general the new arrangements are working smoothly and appear to have reduced very substantially the loss of revenue due to fraud and other abuses.
Certificates are normally valid for periods of up to three years and the first renewals become due in April 1978. Invitations to renew certificates are being sent to sub-contractors six months before the old ones expire, but the response so far has been disappointing. If applications for renewal are not made in good time, it may be difficult to avoid delay in issuing the new documents.
As a first step in the Government's review of the scheme, the Inland Revenue has issued a Press statement inviting comments by 31st March and discussions with the industry on a number of matters, including the life of new certificates, are already under way.