§ Mark TamiTo ask the Chancellor of the Exchequer what he estimates is the annual cost to the Exchequer of(a) under-payment of NICs by those regarded as self- employed and (b) the avoidance of self-employment tax status. [84581]
§ Dawn PrimaroloThe amount lost to the exchequer as a result of a failure by individuals correctly to declare their business profits can only be estimated. Lord Grabiner in his report "The Informal Economy" concluded that it was impractical to arrive at a precise figure but assumed that 'billions of pounds' of income was a realistic figure.
No specific figures are available as to the amounts lost in respect of either tax or national insurance contributions. However, the Inland Revenue annual report for the year ended 31 March 2001 showed that compliance activity by the Inland Revenue had identified additional tax and National Insurance liability of just under £4.5 billion.