HC Deb 16 November 1979 vol 973 cc816-8W
Mr. George Gardiner

asked the Chancellor of the Exchequer whether any consideration has been given to making value added tax repayments quarterly, instead of monthly; and, if so, what consultations have taken place with representatives of the construction industry.

Mr. Peter Rees

As part of the Government's policy to seek ways of reducing the size and cost of the Civil Service, I am looking at ways of reducing the cost of administering VAT. One possibility would be to withdraw the option which repayment traders at present have to submit their tax returns and obtain repayments of VAT on a monthly basis. This change would reduce by about 15 per cent. the number of returns which have to be processed by Customs and Excise. So far, no consultations with industry have taken place.

Mr. Grylls

asked the Chancellor of the Exchequer how many cases are heard annually by the value added tax tribunals; how many members sit on these tribunals; and what is their total annual cost.

Mr. Peter Rees

I will let my hon. Friend have a reply as soon as possible.

Mr. Farr

asked the Chancellor of the Exchequer if he will take steps to end the imposition of value added tax on education visits by organised school parties which has been imposed as from 1 November.

Mr. Peter Rees

[pursuant to his reply, 14 November 1979, c. 629]: No change has been made in the liability to value added tax of visits made by organised school parties. Subsidised visits arranged by local education authorities are treated as outside the scope of the tax. Non-subsidised visits are not liable to VAT provided that they are made for strictly educational purposes and the charge to pupils does not exceed the full cost. Non-subsided visits which are made primarily for recreational purposes are liable to VAT in common with recreational actitivies generally.

It came to light at the end of last year that there was some uncertainty among local authorities about the treatment of organised school visits, and in April this year Customs and Excise provided them with further guidance. The operative date for any corrective action which local authorities found it necessary to take would be a matter to be settled between them and their local VAT office.