§ Mr. Pendryasked the Chancellor of the Exchequer what is the average return gained by Customs and Excise in value added tax at a turnover level of (a) £18,000 and (b) £50,000 from (i) a small business, (ii) a community organisation and (iii) a sports club.
§ Mr. Bruce-GardyneIt is estimated that the average yields to Customs and Excise from traders who normally pay value added tax and who have taxable turnover of £18,000 and £50,000 a year are about £1,350 and £3,000 a year respectively.
Information from which to make estimates of the VAT yield for the particular categories of trader specified is not available.
§ Mr. Pendryasked the Chancellor of the Exchequer what is the average turnover rate at which the cost of administering value added tax within the Customs and Excise breaks even with the return gained from charging value added tax for (a) a small business, (b) a community organisation and (c) a sports club.
§ Mr. Bruce-GardyneThe amounts of VAT paid to Customs and Excise by registered traders are not dependent upon turnover but upon the difference between the amount of VAT charged on goods and services they sell and on those they buy. The net yield of VAT would normally exceed the average cost of collection for a trader whose added value is more than £700 or so a year and whose outputs are all liable at the standard rate of VAT.
It is not possible to make any reliable estimates of VAT administration costs related to particular categories of traders.
§ Mr. Tony Spellerasked the Chancellor of the Exchequer if he will reject the proposals in the draft twelfth VAT directive; and if he will make a statement.
§ Mr. Bruce-GardyneThe Commission's draft has been circulated by Customs and Excise to interested trade280W bodies for comment. Until their responses are evaluated it would be premature to reach a decision. But a decision to adopt the draft directive, or any amended version, would require unanimous agreement of all member states.