§ Mr. Martyn JonesTo ask the Chancellor of the Exchequer what factors underlie his Department's delay in replying to the letters from the hon. Member for Clwyd, South-West dated 11 September 1996 and 12 December 1996, regarding his constituent, Mr. Alton Murphy; and if he will make a statement. [14036]
§ Mr. Oppenheim[holding answer 6 February 1997]: The correspondence from Mr. Murphy related to claims for amounts overpaid as VAT in relation to supplies of spectacles. The reply has been delayed because Customs has been considering whether opticians' claims for overpayments are subject to the three-year time limit on VAT refunds in view of an earlier trade agreement with Customs. The matter was considered during judicial review proceedings decided last November, and Customs has since sought further legal advice in the light of the judge's comments. Customs announced on 10 February that there will be special transitional arrangements for opticians' claims, and I shall be replying fully to the hon. Member shortly.
§ Mr. JonesTo ask the Chancellor of the Exchequer what factors underlie his Department's delay in replying to the letters from the hon. Member for Clwyd, South-West dated 15 October 1996 and 12 December 1996, regarding his constituent, Mr. M. J. Walker; and if he will make a statement. [14037]
§ Mr. Oppenheim[holding answer 6 February 1997]: Mr. Walker's correspondence related to claims for amounts overpaid as VAT arising from a recalculation of tax due following a change of the VAT retail scheme used. Claims for repayment of overpayments are now subject to a three-year time limit, the introduction of which resulted in an enormous volume of correspondence, both on the principle of introducing a time limit and the effect on particular businesses. This has unfortunately led to delays in replying to correspondence, but I shall be writing to the hon. Member shortly.