§ Mr. DenhamTo ask the Chancellor of the Exchequer what is his estimate of the increase in the amount of VAT which will remain uncollected as a result of the proposed reduction in Customs and Excise staff in the area covered by the Southampton local VAT office.
§ Mr. Heathcoat-AmoryThe recently announced reductions in staff result from a package of measures designed to improve overall departmental efficiency and are not expected to increase the amount of uncollected VAT.
§ Mr. DenhamTo ask the Chancellor of the Exchequer (1) what is his estimate of the current amount of uncollected VAT arrears in the area covered by the Southampton Customs and Excise office;
(2) what was the total amount of uncollected VAT debt owing from businesses covered by the Southampton local VAT office area that was written off from each year since 1983;
(3) what is his estimate of the total number of Customs and Excise officers engaged in VAT inspections in the area covered by the Southampton Customs and Excise office in each year since restructuring of local VAT office boundaries, and in each of the forthcoming two years;
(4) what is his estimate of the total number of VAT inspections carried out in the area covered by the Southampton Customs and Excise office in each six-months period since restructuring of local VAT office boundaries, and in each of the next four six-month periods;
(5) what is his estimate of the amount of uncollected VAT outstanding at (a) the end of the current financial year and (b) the end of the financial year 1995–96 in the 331W area covered by the Southampton Customs and Excise office;
(6) what was the total amount of uncollected VAT debt owing from businesses covered by the Southampton local VAT office area written off from each year since 1983;
(7) what is his estimate of the current amount of uncollected VAT arrears in the area covered by the Southampton Customs and Excise office;
(8) how many VAT inspections were carried out in the area covered by the Southampton Customs and Excise Office in each six-month period since restructuring of local VAT office boundaries, and in each of the next four six-month periods;
(9) what is his estimate of the total number of Customs and Excise officers engaged in VAT inspections in the area covered by the Southampton Customs and Excise office in each year since restructuring of local VAT office boundaries, and in each of the forthcoming two years;
(10) what is his estimate of the total amount of uncollected VAT debt owing from business covered by the Southampton local VAT office that will be written off for the financial years 1994–95 and 1995–96.
§ Mr. Heathcoat-Amory[holding answer 7 December]: For the years to March 1993 and March 1994, Southampton local VAT office assigned 43 and 45 officers respectively to VAT visiting duties. For the year to March 1995, Southampton LVO plans to assign 46 officers to such duties. Planning figures are not available for the year to March 1996.
Using those staff the number of visits carried out in each six month period were:
Number April 92–September 92 1,940 October 92–March 93 2,022 April 93–September 93 1,691 October 93–March 94 1,978 April 94–October 94 1,876 October 94–March 95 12,127 1 number of visits planned. Planning figures are not available for periods beyond March 1995. The number of visits is not, of itself, an indicator of the efficacy of the visiting programme as businesses are selected in accordance with their risk profile which may vary from year to year.
In October 1994, the outstanding local VAT debt of registered businesses, within the Southampton LVO area, was £7.3 million.
For the year ending March 1995, Southampton LVO estimates the debt on hand will be some £6.5 million. Planning figures are not available for 1995–96.
Because of the restructuring of local VAT office boundaries and other operational changes, figures for VAT debt written off are not available for die whole period requested. For the years to March 1993 and March 1994, Southampton LVO wrote off £1.1 million and £2.1 million of debt respectively.