HC Deb 02 November 1992 vol 213 cc38-9W
Mr. Andrew Smith

To ask the Chancellor of the Exchequer how many VAT inspection visits are currently planned for the year 1993–94; what was the figure announced in 1991; and what are the reasons for the change.

Sir John Cope

Current plans are for 300,000 VAT control visits in 1993–94, against a figure of 540,000 envisaged in the 1991–92 management plan. The reduction can largely be attributed to the Department's move towards fewer but longer and more thorough visits.

Mr. Andrew Smith

To ask the Chancellor of the Exchequer if he will state for the VAT inspection control programme for year 1991–92(a) the number of staff years used, (b) the running costs, (c) the additional tax discovered and (d) the unit cost ratio of cost to revenue.

Sir John Cope

In 1991–92 a total of 5,461 staff years were used on VAT control visiting, and running costs amounted to £126.8 million. A total of £1,464 million was discovered as gross additional liabilities, producing a unit cost—pence per £—of 8.7. Over declarations of £500 million were also identified, giving net additional liability of £964 million producing a unit cost—pence per £—of 13.2.

Mr. Andrew Smith

To ask the Chancellor of the Exchequer how much on average each VAT inspector raised in additional VAT liability in the last financial year; and what is the average cost of employing a VAT inspector.

Sir John Cope

In 1991–92 each VAT control officer identified on average about £270,000 in gross additional liability and £90,000 in over-declarations made by traders. The average running cost involved in employing each officer was around £23,000.

Mr. Andrew Smith

To ask the Chancellor of the Exchequer how many staff years are planned for VAT control visiting for the year 1993–94.

Sir John Cope

Current plans are for 5,562 staff years for VAT control visiting in 1993–94.