§ Mr. LidingtonTo ask the Chancellor of the Exchequer how many businesses participate in the VAT Annual Accounting Scheme; what his estimate is of the total number of businesses eligible to participate; and if he will make a statement. [54459]
§ Mr. BoatengSince 1 April 2001, the VAT annual accounting scheme has been available to some 1 million businesses, but less than 10,000 have so far taken it up. In the consultation document "Easing the impact of VAT", the Government explained that "despite the administrative and cash flow benefits, take up of the scheme is currently very low" and set out plans to reform the scheme to encourage greater take-up. These reforms were introduced on 25 April and are expected to achieve a significant increase in take-up of the scheme.
§ Mr. LidingtonTo ask the Chancellor of the Exchequer what his estimates are of(a) the number of businesses eligible to participate and (b) the revenue that would be forgone in a full year, if the upper turnover limit on the proposed flat-rate VAT scheme were raised to (i) £200,000 and (ii) £250,000. [54457]
§ Mr. BoatengIn the Budget, the Government announced that—from next April—the flat rate scheme will be available to 700,000 small businesses with turnovers up to £150,000. If the upper turnover limit of the flat-rate scheme was extended to £200,000 or £250,000, approximately 80,000 or 130,000 additional traders would respectively be eligible to join. The costs of such an extension would depend on the details of such proposals, including the rates applicable under the scheme.
§ Mr. LidingtonTo ask the Chancellor of the Exchequer how many businesses have participated in the farmers flat rate VAT scheme in each of the last three years; what his estimate is of the total number of businesses eligible to participate; if he will make a statement. [54458]
§ Mr. BoatengThere were 807 businesses using the agricultural flat rate scheme in 1999, 994 in 2000 and 1,062 in 2001. All businesses whose non-farm income does not exceed the VAT registration threshold, and who supply goods, or goods and services (but not services 37W alone), which qualify for inclusion in the scheme are eligible to join. No estimate has been made of how many businesses in total are eligible to participate in the scheme.