§ Mr. LidingtonTo ask the Chancellor of the Exchequer (1) how many company car drivers whose employers have supplied the Inland Revenue with correct information have been issued with incorrectly calculated coding notices in the last 12 months; [37844]
(2) how many renewal coding notices the Inland Revenue plans to issue to company car drivers before 30 March. [37845]
§ Mr. BoatengThe recent problems which have led to some individuals' car benefit figure for 2002–03 being calculated are the only known instance where information properly submitted by employers has not been correctly used to calculate coding notices. We believe that up to 280,000 cases are affected. In all cases the Revenue will send a correct coding notice before the start of the tax year.
As at the end of December, the Inland Revenue had not received the relevant information for approximately 1.2 million company car drivers and therefore had to estimate the amount of car benefit for 2002–03. By early March all of those taxpayers will have received a leaflet asking for the necessary information to correctly calculate 1330W their tax code. The number of these revised coding notices issued before the new tax year will depend upon the rate of response to the requests.
§ Mr. LidingtonTo ask the Chancellor of the Exchequer what evidence he has collated on whether the changes to company car taxation due to come into force on 6 April have influenced companies' choices of cars. [37846]
§ Mr. BoatengThe Inland Revenue will comprehensively evaluate the effects of the changes to company car taxation applying from 6 April. The Revenue will begin this evaluation after the changes have been introduced, and the work will include an assessment of the effects on employers' and employees' choices of cars.