§ Mr. Thurnhamasked the Chancellor of the Exchequer if he will estimate (a) the number of P11D forms concerning benefits in kind which would be submitted, (b) loss of revenue and (c) administrative cost arising in a full financial year, if the minimum income level was raised to £15,000 per annum.
§ Mr. MooreThe earnings threshold of £8,500 defining those in "higher-paid employment" for the purpose of assessing benefits in kind does not apply to most directors. If the threshold was raised to £15,000 for 1985–86, about 700,000 forms P11D would be submitted. The direct revenue cost in a full year would be about £125 million and the savings of administrative costs about £3 million.
Simulated effects of lower nominal wages,† Unchanged nominal framework‡ *of which £ million, changes from base Total Company profits North Sea Non-North Sea Manufacturing investment Year 1 1,290 190 1,100 60 2 1,600 20 1,570 160 3 1,050 -80 1,130 120 4 1,400 -40 1,430 120 * Any discrepancies due to rounding. † Nominal wages are reduced to the extent necessary to reduce real wages by 2 per cent. ‡ Unchanged money supply (average of Mo & £M3); unchanged PSBR/GDP ratio achieved by varying income tax; unchanged cash-limited expenditure in real terms.