Income Tax (Hansard, 15 July 1998)

§ Mr. Edward Davey
To ask the Chancellor of the Exchequer what was the total cost to the Exchequer of administering income tax in the last year for which figures are available; what was the cost 10 years ago; what trend is forecast for this cost; and if he will make a statement. [49476]

§ Mrs. Liddell
In 1997–98, the total cost of administering income tax was £1,190 million. In 1987–88, the cost was £740 million. (All figures rounded to the nearest £10m).
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Future costs of administering income tax depend on a number of factors, not least government priorities and developments in tax policy. However, it is expected that, once the new system of self-assessment is fully bedded in, the administration of the income tax system will be more efficient than in the past.

§ Mr. Edward Davey
To ask the Chancellor of the Exchequer what estimate he has made of the cost to taxpayers of employing tax accountants in the last financial year in respect of income tax collection; what was the figure 10 years ago; what trend is forecast for this cost; and if he will make a statement. [49480]

§ Mrs. Liddell
The reasons why taxpayers employ agents to deal with their tax affairs vary, and are subject to personal choice. For this reason, the Inland Revenue does not collect information of this nature, nor has it any plans to do so.

§ Mr. Edward Davey
To ask the Chancellor of the Exchequer what was the cost of countering income tax evasion for the last year for which figures are available; what was the cost 10 years previously; what trend is forecast for such costs; and if he will make a statement. [49481]

§ Mrs. Liddell
In 1997–98, the cost of countering income tax evasion was about £160 million. In 1987–88, the cost was £80 million. (All figures are rounded to the nearest £10m).
It is expected that spending on compliance will be higher in 1998–99 than in 1997–98, as the introduction of self-assessment will mean a switch of resources from work on returns prior to making an assessment to checks made later and recorded as compliance work. However, longer-term trends are dependent on a number of factors, not least government priorities and developments in tax policy.