HC Deb 03 March 1978 vol 945 cc428-9W
Mr. Skeet

asked the Chancellor of the Exchequer (1) on the assumption that about 75 per cent. of British traders have a turnover of under £50,000 per annum, what he estimates would be their total liability for value added tax and the cost to the Revenue for the collection of the tax;

(2) what is the total yield of value added tax between the current threshold of £7,500 and (a) £10,000 and (b) £20,000 after deducting cost of collection at each level.

Mr. Robert Sheldon

Such information as is available about the net tax paid and repaid by range of turnover is published in the report of the Commissioners of Her Majesty's Customs and Excise for the year ended 31st March 1977. There is a copy in the Library of the House.

I regret that the information asked for about cost of collection is not available but the total cost of administering VAT in 1976–77 was about 2.1p for every £1 of revenue collected.

Mr. Skeet

asked the Chancellor of the Exchequer at what point in the levy of value added tax the cost of collection equals the yield of the tax.

Mr. Robert Sheldon

The net yield of VAT would normally exceed the cost of collection for a trader whose added value is more than £800 or so a year and whose outputs are all liable at the standard rate of VAT.

Rear-Admiral Morgan-Giles

asked the Chancellor of the Exchequer what consideration has been given to zero rating for value added tax work carried out for the repair and maintenance of houses.

Mr. Robert Sheldon

This has been carefully considered in the light of a number of representations, but repair and maintenance work on houses could not be singled out ahead of other classes of building; across-the-board zero-rating for building repair and maintenance could cost the Exchequer up to £125 million in a full year; and any significant extension of zero-rating in the area would in any case be contrary to the EEC Sixth Council Directive on VAT.