§ Mrs. RocheTo ask the Chancellor of the Exchequer if he will ensure that small firms will not suffer financially as a result of the introduction of self-assessment taxation. [38904]
§ Mr. JackSelf-assessment is a clearer, more straightforward, more efficient tax administration system which will reduce costs for the self-employed.
§ Mrs. RocheTo ask the Chancellor of the Exchequer what percentage of tax returns completed by volunteers in the pilot self-assessment of taxation scheme were filled in(a) correctly, (b) incorrectly and (c) on time. [38894]
§ Mr. JackResults from the first year's live trial of self-assessment in Leicester show that 95 per cent. of tax returns could be processed without further reference to the taxpayer. Of these, 37 per cent. required the Revenue to make a correction of an obvious error in the return. A total of 79 per cent. of tax returns were submitted to the Inland Revenue within the time allowed under 245W self-assessment. Revised forms reflecting comments by the Leicester volunteers, are currently being used in the extended live trial in Leicester and Southampton.
§ Mrs. RocheTo ask the Chancellor of the Exchequer what assessment he has made of the extra costs to small firms of paying accountants to prepare accounts for random inspection by the Inland Revenue. [38893]
§ Mr. JackIn order to monitor the operation of self-assessment and enhance compliance, the Inland Revenue will carry out a small number of random inquiries into returns under the self-assessment taxation system. As all necessary information will be included in the self-assessment return form, small firms will not be required to prepare accounts for self-assessment.