HC Deb 08 March 2000 vol 345 cc772-4W
Mr. Drew

To ask the Chancellor of the Exchequer what is the maximum amount of(a) national insurance and (b) personal taxation that an individual will pay under the changes caused by the introduction of IR35. [112989]

Dawn Primarolo

[holding answer 3 March 2000]: The amount of personal tax and National Insurance Contributions that a personal service company will have to pay following the introduction of IR35 will depend on individual circumstances. It is not possible to provide estimates of the maximum amounts payable.

Mr. Ottaway

To ask the Chancellor of the Exchequer what is the expected net revenue gain from the introduction of IR35; and what assumptions the Government have made as to the number of business closures and the extent of business migration overseas for the purposes of calculating this figure. [112763]

Dawn Primarolo

Estimates of the revenue which will arise from the proposed measure to stop avoidance of tax and National Insurance Contributions using personal service companies were included in the Financial Statement and Budget Report published on Budget Day in March 1999. Information on the assumptions used was included in the Regulatory Impact Assessment on the Welfare Reform and Pensions Bill which was published in October 1999.

Mr. Ottaway

To ask the Chancellor of the Exchequer how many contractors operating through personal service companies have moved overseas(a) in each year since 1992 and (b) in the last year for which figures are available; and what is his Department's estimate for each of the next three years. [112764]

Dawn Primarolo

I regret that this information is not available.

Mr. Ottaway

To ask the Chancellor of the Exchequer if he will estimate, broken down by industrial sectors, the extra taxation that the introduction of IR35 will place on contractors operating through personal service companies(a) next year, (b) in 2001–02 and (c) in 2002–03, assuming current levels of tax rates. [112765]

Dawn Primarolo

I regret that it is not possible to provide a breakdown of the tax liability arising from the introduction of IR35 by industrial sector which prevents avoidance of tax and NICs. However, a breakdown of the 50,000 personal service companies that are estimated to be affected by this measure by broad industry group is provided in the Regulatory Impact Assessment on the Welfare Reform and Pensions Bill published in October 1999.

Mr. St.Aubyn

To ask the Chancellor of the Exchequer what is his estimate of the extra revenue which will arise as a result of the introduction of IR35. [112858]

Dawn Primarolo

Estimates of the revenue which will arise from the proposed measure to stop avoidance of tax and National Insurance Contributions using personal service companies were included in the Financial Statement and Budget Report published on Budget Day in March 1999.

Mr. St. Aubyn

To ask the Chancellor of the Exchequer which sectors of industry benefit most from the rules on national insurance contributions that would be changed under IR35 proposals. [112859]

Dawn Primarolo

All sectors of industry will benefit from the changes we propose. IR35 will prevent avoidance of NIC and right level of tax, allowing us to target support on the real entrepreneurs.