§ 17. Mr. Gregoryasked the Chancellor of the Exchequer if he has any plans to alter the 15 per cent. value added tax rate for United Kingdom to bring confectionery into zero rate like other foods.
§ Mr. LilleyNo.
Mr. John Mark Taylorasked the Chancellor of the Exchequer what representations he has received regarding the time limit within which traders must account for value added tax compared with the average time it takes them to collect the value added tax owed to them on their own invoices.
§ Mr. LilleyAs my hon. Friend will be aware, subsequent to him putting down this question my hon. Friend the Paymaster General made an announcement about cash accounting on 17 August. There have been persistent representations from small businesses that they frequently have to pay VAT before their own bills are paid. To meet this, my hon. Friend the Paymaster General introduced, from the start of this month, an optional system of cash accounting for VAT, under which small traders no longer have to pay VAT until they have received their payment from their customers.