§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what estimate he has made of the change in the income tax yield form the self-employed for(a) 1996–97, (b) 1997–98 and (c) 1998–99 which will result from the change in the basis period of account under self-assessment. [26189]
§ Mr. Jack[holding answer 22 April 1996]: As I explained in my reply to the hon. Member for Oxford, East (Mr. Smith) on 9 February, Official Report, column 388, 234W just over £700 million of the yield in 1998–99 from self-assessment, as shown in the table 5.2 of the "Financial Statement and Budget Report 1996–97", relates to income tax and class 4 national insurance contributions on the profits of trades, professions and vocations. The equivalent figures for 1996–97 and 1997–98 are a yield of about £50 million and a cost of about £100 million respectively.
These estimates are particularly sensitive to assumptions about growth in income from these sources.