HC Deb 22 January 2004 vol 416 cc1420-1W
Mr. Letwin

To ask the Chancellor of the Exchequer what consultation he carried out before introducing the 1R35 regulation. [R] [149814]

Dawn Primarolo

The intention to legislate the tax treatment of people working through intermediaries was announced in the 1999 Budget, a year before the changes were due to take effect. This was followed by extensive consultation. By the end of August 1999, the Inland Revenue had provided over 1,800 copies of the original proposals to whoever asked for them, and held consultative meetings with 38 representative bodies. Over 1,700 written comments and suggestions were received, considered and used to inform development of the intermediaries legislation.

Mr. Letwin

To ask the Chancellor of the Exchequer what consultation he carried out before reinterpreting section 660A of the Income and Corporation Taxes Act 1988. [R] [149813]

Dawn Primarolo

There has been no reinterpretation of Section 660A of the Income and Corporation Taxes Act 1988. The Inland Revenue published in April 2003 guidance on their existing interpretation.

Mr. Letwin

To ask the Chancellor of the Exchequer if he will make a statement on the progress of(a) the IR35 regulation and (b) section 660A of the Income and Corporation Taxes Act 1988 regulation in securing additional tax revenue. [R] [149861]

Dawn Primarolo

Those covered by the intermediaries legislation are required to register with the Inland Revenue as employers and to operate PAYE/NIC in accordance with the legislation. The Inland Revenue does not routinely collect data in respect of specific types of employer from either PAYE/NIC returns or in respect of its Employer Compliance Review programme. It is therefore not possible to isolate the increase to the exchequer arising from this legislation. Information on the amount of tax charged under Section 660A Income and Corporation Taxes Act 1988 is not available.