HC Deb 30 April 2002 vol 384 cc729-30W
Brian Cotter

To ask the Chancellor of the Exchequer if he will estimate how much(a) businesses and (b) the Inland Revenue will save as a result of introducing a requirement to submit information to the Inland Revenue electronically, as announced in his Budget statement. [52994]

Dawn Primarolo

Employers are expected to realise savings from the greater certainty and speed that electronic preparation and submission of returns provide. The extent of the savings will be determined during consultation with employers on the full Regulatory Impact Assessment to be prepared and published by the Inland Revenue.

The Inland Revenue are expected to realise savings from the reduction in paper handling and correction of errors, both in local offices and at their National Insurance Contributions office. In his review of Payroll services, Patrick Carter estimated the potential savings to the Inland Revenue at £35 million a year, after a period of five years.

Brian Cotter

To ask the Chancellor of the Exchequer how many businesses(a) use and (b) have access to computer hardware that may be updated to allow businesses to submit end of year returns to the Inland Revenue electronically. [52993]

Dawn Primarolo

The Inland Revenue does not hold information about how many businesses use or have access to computer hardware that may be updated to allow businesses to submit end of year returns to the Inland Revenue electronically. However, businesses do not need to own a computer to submit their PAYE end of year returns electronically. It is a key part of the strategy in Patrick Carter's report to encourage small employers to use the services of intermediaries if they find that more helpful than personally handling the completion and submission of their returns. Employers who wish to complete and submit their own returns can use PAYE online forms which are accessible from the Inland Revenue's website using any Internet connected computer, including those available in libraries and Internet cafes.

Brian Cotter

To ask the Chancellor of the Exchequer when the Inland Revenue internet service for administering PAYE was introduced; and how many employers have made use of the scheme since its introduction. [52995]

Dawn Primarolo

The internet service for PAYE was launched in April 2001. There are over 14,000 employers and agents registered to use the service. 2,700 employers used the service to submit their end of year return in 2001. The Inland Revenue also provides an EDI (electronic data interchange) service which employers can use to submit returns. EDI is currently used by 55 organisations, including payroll bureaux, who represent 5,536 employers who between them have over six million employees.

Brian Cotter

To ask the Chancellor of the Exchequer what action will be taken against those small businesses who are unable to submit their end of year returns to the Inland Revenue by 2010. [52992]

Dawn Primarolo

Employers with fewer than 50 employees will be required to send their end of year returns electronically to the Inland Revenue by 2010. To support businesses in the switch to new technology, the Inland Revenue will be expanding the payroll support given by their business support teams and employers' helpline. Employers, who do not wish to handle electronic submission of returns themselves, may use an intermediary, such as a payroll bureau, to submit returns on their behalf.

We intend that the emphasis will be very much on helping employers to comply with their obligations, but we envisage that the relevant legislation will include some sanctions for those who do not do so.