§ Mr. Neil Hamiltonasked the Chancellor of the Exchequer what guidelines he has issued to the Inland Revenue with respect to the reclassification of taxpayers from schedule E to schedule D of the income tax code.
§ Mr. MooreIn this, as in other areas of taxation, inspectors of taxes have a duty to apply the law and for this purpose to tax the genuinely self-employed under schedule D and the genuinely employed under schedule E. The advice issued by the Board of Inland Revenue to inspectors is designed to achieve that objective and covers the criteria that the courts have established as relevant in deciding whether an individual is an employee or in business on his26W own account. Inspectors are always ready to give guidance to anyone who is uncertain of his status for tax purposes. The Government have introduced a wide range of tax and other measures to encourage genuine self-employment and we are continuing to explore ways to help people understand the criteria distinguishing employment and self-employment for tax, as for other, purposes.
§ Mr. Neil Hamiltonasked the Chancellor of the Exchequer if he will list the number, size and locations of the Inland Revenue special offices dealing with the recategorisation of Schedule D taxpayers.
§ Mr. MooreThere are special offices in London (3), Edinburgh, Manchester, Solihull, Sheffield, Croydon, Bootle and Bristol, with an average of about 17 staff in each. Reviewing individuals' employment status for tax purposes forms only a very small part of the functions of any special office.