§ Mr. Mike O'BrienTo ask the Chancellor of the Exchequer how many tax inspectors will deal with self-assessment in(a) 1994–95, (b) 1995–96, (c) 1996–97 and 1997–98. [8313]
§ Mr. JackSelf-assessment will start with the 1996–97 tax year, and the tax return issued in April 1997. Accordingly, no tax inspectors will be dealing with self-assessment returns in advance of that date, although many inspectors have spent time helping taxpayers to prepare for self-assessment, giving seminars to local accountants, and so on. The need for tax inspector involvement in the work will increase progressively throughout 1997–98 and into 1998–99, as returns are received from taxpayers.
The Inland Revenue currently employs approximately 6,000 tax inspectors in local offices. Many of these deal with the affairs of taxpayers who receive tax returns, and will continue to do so when they start to received self-assessment tax returns.
§ Mr. O'BrienTo ask the Chancellor of the Exchequer how many persons who are not currently using accountants the Department estimates will use accountants when the programme of self-assessment is introduced. [8317]
§ Mr. JackNeither the extensive market research programme nor surveys of those who have helped test the new tax return has yielded evidence that significant numbers of people will start to engage accountants as a result of self-assessment. On the contrary, some taxpayers viewed self-assessment as an opportunity to dispense with the services upon which they had previously depended.
A full trial of the system is taking place in Leicester and may give a clearer indication of likely attitudes in the light of experience of the new system. No such data are yet available.
The Inland Revenue considers that it is not necessary for those people who do not currently use the services of an accountant to engage one as a result of self-assessment. Those taxpayers who do not wish to calculate their own tax bill can ask the Inland Revenue to do it for them free of charge.