§ Mr. Sternasked the Chancellor of the Exchequer what was the average cost in 1983–84, taking into account officers' time and all appropriate overheads, of the issue of a demand note for income tax due; and whether he will investigate the case for reducing the number of demands issued.
§ Mr. MooreI regret that a figure for the actual average cost of the issue of demand notes for income tax due could not be supplied without a disproportionate expenditure of time and resources. Taking schedule D income tax, the first application for payment is produced as part of the notice of assessment and is issued by local tax districts. Subsequent demand notes are issued automatically by the two computerised accounts offices. The actual cost of the demand notes used at the accounts offices is less than 1p224W and it is estimated that the overall cost is only marginally in excess of that amount. The greatest cost in demand note issue is postage, where the second-class rate applies.
As to the number of demand notes issues, this is governed by the length of time tax remains outstanding or by adjustments made to the original amount due. The frequency of reminders is reviewed from time to time and has regard to maintaining the impetus of payment.