HC Deb 17 June 2002 vol 387 cc138-9W
Mr. Hancock

To ask the Chancellor of the Exchequer what estimate has been made of the number of false self-employment tax claims in each of the last three years; and if he will make a statement. [62343]

Dawn Primarolo

None. An individual's employment status for tax and national insurance purposes depends on the terms and conditions under which that person is engaged. Where the Inland Revenue discovers that someone is working on terms which should mean they are employed but are being treated incorrectly by their employer as self-employed then the employer may have to meet extra tax and national insurance liabilities for past years, interest and penalties. In cases of fraud or evasion, the Inland Revenue may prosecute.

Mr. Hancock

To ask the Chancellor of the Exchequer what measures have been taken to deal with the level of false self-employment tax claims; how much has been spent investigating such claims in each of the last three years; and if he will make a statement. [62342]

Dawn Primarolo

The Inland Revenue aims to ensure that the law on employment status is applied even-handedly across all sectors of industry. As part of its compliance strategy, the Revenue's local employer compliance review teams consider employment status issues when undertaking reviews to ensure employers and contractors are compliant with the tax and national insurance laws generally. No accurate estimate of the cost of the employment status element of these reviews is possible.

Mr. Hancock

To ask the Chancellor of the Exchequer what estimate has been made of the cost of false self-employment tax claims in each of the last three years; and if he will make a statement. [62340]

Dawn Primarolo

None.

Mr. Hancock

To ask the Chancellor of the Exchequer what steps he plans to take to combat the falsification of tax claims by the self-employed; and if he will make a statement. [62341]

Dawn Primarolo

The Inland Revenue aims to ensure that the law on employment status is applied even?handedly across all sectors of industry. As part of its compliance strategy the Revenue's local employer compliance review teams consider employment status issues when undertaking reviews to ensure employers and contractors are compliant with the tax and national insurance laws generally.