§ Vernon CoakerTo ask the Chancellor of the Exchequer what representations he has received about the requirement for new businesses, including the self-employed, to register with the Inland Revenue within three months of setting up; what steps he has taken to inform businesses of this new requirement; and if he will make a statement. [65704]
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§ Dawn PrimaroloNewly self-employed people who are liable to pay Class 2 National Insurance contributions are required by law to register with Inland Revenue "immediately" but this term was not further defined. Following public consultation, we have established a set time-limit for registration. At its introduction in January 2001 the modified requirement was advertised through the national, regional and ethnic press and on local radio stations. The requirement is clearly stated in all the Inland Revenue leaflets and guidance on starting up in business. Inland Revenue is evaluating the effectiveness of the new requirement and a report will be issued later this year. In 2001, the first year that the new requirement was in force, the number of self-employed people registering with Inland Revenue increased by 19 per cent. over the number registering in the year 2000.