§ Sir Trevor Skeetasked the Chancellor of the Exchequer how many firms have exceeded the time limit for making value added tax returns; and how many prosecutions have occurred in the past year.
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£ billion 1984–85 1985–86 Department Plans* Outturn‡ Difference Plans† Estimated outturn‡ Difference Defence 17.1 17.2 +0.1 18.0 18.2 +0.2 Foreign and Commonwealth Office║ 1.8 1.8 — 1.9 1.9 — European Community 0.4 0.9 +0.6 0.7 0.8 +0.1 Ministry of Agriculture, Fisheries and Food¶ 2.1 2.1 — 2.1 2.5 +0.4
§ Mr. BrookeOf the 1.5 million or so traders who are registered for VAT about 75 per cent. usually fail to furnish returns by the due date. In the 1985 calendar year, 4,360 traders, representing some of the most serious cases, were prosecuted for such failures.
§ Sir Trevor Skeetasked the Chancellor of the Exchequer if he will take steps to permit small firms to make value added tax returns within two months instead on one month currently permitted.
§ Mr. BrookeNo. The one-month period for payment was set only after extensive consultation with trade and other interests. It allows an average of two and a half months' credit before the tax charge to customers has to be paid to Customs and Excise. However, as part of the Government's deregulation initiative, Customs and Excise is reviewing its policy towards small businesses more generally, including the practicability of any other special arrangements for them.
§ Sir Trevor Skeetasked the Chancellor of the Exchequer what percentage of total value added tax remains uncalculated due to default.
§ Mr. BrookeNone. All value added tax due is assessed by calculations performed by Customs and Excise in default of returns by registered traders.