§ 65. Mr. Wallaceasked the Chancellor of the Exchequer if he will estimate the number of small businesses likely to be subjected to the new non-mitigable penalties for late submission of value added tax returns; if he will arrange a review of the effects of such penalties on small businesses; and if he will make a statement.
§ Mr. BrookeFollowing a recent substantial improvement in VAT compliance I expect only a minority of all 187W registered businesses to become liable to surcharge. I regret that it is not possible to make separate estimates in regard to small businesses. Otherwise, I refer the hon. Member to my reply today to the hon. Member for Yeovil (Mr. Ashdown).
§ 66. Mr. Ashdownasked the Chancellor of the Exchequer what representations he has received on the likely effects on small businesses of the new non-mitigable penalties for late submission of value added tax returns; and if he will make a statement.
§ Mr. BrookeA number of representations have been received from trade associations and individual businesses about the effects on cash flow of adhering to the due date for the payment of VAT on Her Majesty's Customs and Excise.
The recent consultation paper, "VAT: Small Business Review" makes a number of important proposals for assisting small businesses in regard to the accounting requirements for the tax. The Government are also committed to a full review of the operation of the new penalties and default surcharge system before the 1988 Budget.