HC Deb 18 June 1998 vol 314 c273W
Dr. Cable

To ask the Chancellor of the Exchequer on how many occasions the Inland Revenue has sent out under the self-assessment initiative(a) more than one demand to the same person, (b) demands where no tax was due, (c) demands containing computational error and (d) penalty notices to taxpayers who filed in time. [44949]

Dawn Primarolo

Under self-assessment, the Inland Revenue issues taxpayers with Statements of Account (not demands) which are a statement of the individual's tax position and include a payslip to enable the taxpayer to make payment if one is due. It is therefore possible that a taxpayer would receive a statement of account showing no tax to pay.

The Management Information System for Self Assessment, whilst recording the number of Statements of Account issued, does not record whether more than one had been issued to the same person or whether any have been issued containing computational errors. Nor does it record the number of penalty notices issued to taxpayers who filed on time but the Inland Revenue do know that some penalties were incorrectly issued where returns were not recorded as received. Incorrect penalty notices will of course be cancelled.

The Inland Revenue will, in the second year of live service for self-assessment, be looking at improved guidance to staff and the development of quality monitoring processes to ensure continued improvement to a system that has performed well in its first year.